Seven Benefits of Hiring A Freight Forwarder For Your Business

June 19, 2020

In this competitive business environment, most companies strive to expand their market share to generate more profit. Several companies operate beyond borders and have gone global. The import and export of goods and raw materials are critical for a company’s success. Besides, corporations often need to send their products from one city to another in the same country. Many companies do not possess in house resources for transporting goods from place A to place B. They get freight quotes and hire the best freight services that do the job for them while ensuring the safe transportation of the products.

To make things easy for the business owner, freight forwarding companies help transport goods from the manufacturer to the customer or the retailer. Considering an international transport service like TSL Australia is a good way to dip your toes in the industry. They operate as an agent of the company and offer an economical yet safe transfer of products. Some freight forwarding companies provide International transportation, while some work on a national level. They work as a travel agent, but not for people, instead of merchandise.

Freight forwarding companies work with suppliers, carriers, logistic providers, and other clients. They have means of deporting huge consignments, and they plan and arrange the whole process of transportation. A general misconception is that they pick up stock, and then deliver it to the final destination. Freight forwarders’ job is not as simple, as the process requires extensive paperwork, which also involves trading regulations. Moreover, freight forwarders can give you a piece of better advice regarding what mode of shipment would suit your corporation.

Freight forwarders provide their services through different modes. Their expertise is generally reliable, and business owners feel relief after assigning the task of transportation to them.

Following are the different types of freight forwarding:

Air Forwarding

Air forwarding involves planning and arranging the transport of freight from one place to another through airplanes. Furthermore, air forwarding does not take much time, and contrary to popular belief, it is not expensive either.

Land Forwarding

Land freight forwarders are ideal for massive projects that require back and forth transportation of bulky items. Large-scale construction projects usually hire land forwarders for the safe transfer of tools, raw material, and other stuff. If you are from Illinois you can safely rent shipping containers in Chicago since they are considered among the best in the world.

Ocean Forwarding

Companies prefer ocean forwarding over air and land freight forwarders when they need to send large items in high quantity. Ocean freight forwarders have the expertise and are aware of laws regarding transferring cargo. Besides, ocean forwarding is cost-effective as compared to air forwarding, especially if it involves transporting goods internationally. Since most companies do not own airplanes, ships, or trucks, they take advantage of freight forwarders.

The advantages of hiring freight forwarders are numerous, and below we are listing a few of them:

1. Timely Pickup and Delivery

Companies often lose clients because they are unable to cater to customers’ needs on time. When a package is lost overseas, clients find themselves at a loss as there is not much they can do. Freight forwarding has emerged as a profession, and these companies offer timely delivery of your cargo. A legit freight forwarding company has proficient workers who show professionalism from planning the transportation process, till the delivery. A successful and credible logistics services company can make a world of difference to your businesses’ efficiency and productivity.

2. Efficient Track Systems

It may take a reasonable amount of time for your consignment to finally reach its destination. Companies fret about losing their merchandise on the way. Moreover, when they have a tracking system of their cargo, they feel at ease. Although there are options for delivering goods through other services, authentic freight forward companies keep track of your cargo. They have an easy-to-implement tracking system in place, owing to advancements in technology. Due to tracking enabled freight forwarding, clients know when their shipment will reach them or the desired destination.

3. Security

The most significant benefit of hiring freight forwarders is that they offer the utmost security. You can be at peace that your stuff is in reliable hands despite sending your valuable cargo to faraway lands. Freight forwarders have proper tools, equipment, and compartments to keep all kinds of stuff. They ensure to keep fragile pieces with maximum care. Full proof packaging keeps the small and delicate items intact. Freight forwarders work with proper digital and manual documentation, which is why they offer a guarantee that your stuff will be safe.

4. Cost-Effective

The bigger your package is, the more expensive it would be. However, freight forwarders offer comparatively reasonable shipments. Since you will not be the only one sending packets through them, they can provide you with a better price. Moreover, many freight forwarders offer discounted rates to regular clients and to those who send large shipments. They have means of transporting items in bulk quantities and staff to ensure that process goes smoothly, which is why they offer the first-class service at economical rates.

5. Accurate Documentation

It is no secret that companies who have experience in a particular field operate professionally. For business owners, full or partial truckload shipping across international borders can become the worst nightmare if a carrier shows a disparity in legal documentation. The two countries which are involved in the business transaction don’t necessarily follow the same set of laws and regulations. Incomplete and inaccurate documentation can lead to lengthy delays, and banks can put the transaction of your money on hold. Freight forwarders ensure that all paperwork is immaculate, take care of your documentation, and deliver cargo following legal procedures.

6. Inventory Management

Freight forwarders have a vast network spreading across miles. Hiring a freight forwarder will save you from hiring different people for different tasks. Freight forwarding companies have resources that aid in managing inventory efficiently. Freight forwarder offers hassle-free, fast services that help you in expanding your business.

7. Warehousing

Businesses hire freight forwarders to ship goods in bulk quantity. Although freight forwarder ensures that your shipment will reach its target, they also keep an option of warehousing if, for some reason, they are unable to deliver your goods. Approved freight forwarders offer storage in case your shipment land at a foreign land. They have a warehouse where they keep the client’s staff and make sure that inventory remains secure.

Conclusion

Freight forwarders have proper knowledge of logistics and work through appropriate channels. International shipment usually involves more than one mode of transport, and different ways have different rules. Freight forwarders have the know-how of the regulations, and they provide transparent lawful service. A wise approach is to hire a licensed freight forwarder, which allows you to track your cargo. When a company has ambitions to expand its reach, it needs to transport goods to distant locations. Dealing with numerous service providers could be a headache, and hiring freight forwarder is an easy and effective solution.

Go to top

5 Kitchen Appliances on Which You Can Save Money

June 19, 2020

It is not surprising to say that kitchen appliances are one of the necessary purchases of life. Just like a car or furniture, they help increase the home’s value. With so many options available out, it becomes overwhelming for a buyer where it is fruitful to invest money. Be the need is for the oven, fridge, juicer, or any other appliance, making a smart move is necessary. Although the purchase of kitchen appliances depends upon your lifestyle still we are describing you here the kitchen appliances on you can save money and make life easier to live.

Kitchen appliance prices increase with the increasing needs of a homeowner. If you want to save money on kitchen appliances, then prefer kitchen appliances that carry features that matter you the most. Keep yourself in budget and focus on the lifestyle you live. Avoid purchasing kitchen appliances that have similar features but are expensive in terms of price. They are never a good deal for you and your family.

Kitchen Appliances: Where You Need To Invest or Where Not?

Blender over Food Processor

A blender is a must appliance of every kitchen space. Not only mesh the food items perfectly but it also costs less than your food processor. Plus, they are more durable and can last many years to come. When it comes to using, one can easily access it without much knowledge. It is worth investing in this if you do not need all the functions that are available in the food processor. If protein shakes are part of your regular, then go for this option as it meets every budget.

Cheap Juicers over Expensive One

A market is full of countless cold press masticating juicers to serve your daily needs. All those who are fond of citrus juice can consider shopping for the cheap juicers. No doubts! An expensive juicer carries advanced features but if those features are not important for you, then you can go with a cheaper one. It will save lots of your money in the long-term and you can spend it on other new home appliances.

One-door Refrigerator over Built-in refrigerator

A purchase of a one-door refrigerator helps you be in your budget and save a lot of money. You can compromise with the size if you have a small family. Whereas built-in refrigerators are generally taller than freestanding models. Just focus on the features that save your loads of money i.e. energy efficiency. Don’t make a mistake of investing in the refrigerator that isn’t energy-efficient and you are only buying due to its latest features.

Ovens over Microwave

Another way to save money on the purchase of kitchen appliances is to shop for oven over the microwave. The reason is that oven can be used for multiple purposes like baking, grilling, roasting, and reheat food. Whereas, a microwave is designed only to cook or reheat food. So, it better goes with oven rather than investing in both separately.

Go with the purchase of conventional over as they make use of just waves to heat food rather than entire space. All this means, they are energy efficient as compared to the traditional ones. Plus, always make choice for a reliable brand rather than expensive one. Paying in a reliable brand means you are away from the use of unnecessary features. Your importance is on the durability as it ensures that the kitchen appliance you are buying is going to last for many years to come.

The same can be said for grills and smokers. If you have an outdoor kitchen, these are worthy appliances to invest in as well. It can be tricky to find the best models though, so we recommend that you check out this page for reviews and tips.

Coffee Maker over Coffee Machine

If you are a kind of person who is addicted to coffee, then it is good to buy a coffee maker rather than investing in an expensive coffee machine. Due to its simple functionality and limited features, a coffee maker can be considered as a cheaper option. Plus, it is an energy-efficient option as it doesn’t consume much electricity for the preparation of coffee.

Where to Shop for Kitchen Appliances?

Choose the platforms that sell kitchen appliances with free delivery at your doorstep. This will save the extra cash that you pay on the delivery of the product. And the delivery charges you save can use for paying other bills. Prefer to do shopping during off or special seasons. Have patience and wait for the best deals on your home appliance. You can surely get decent discounts you never even wondered or imagined. Also, follow the platform that sells high-quality appliances on great discounts. Kamado bbq is a good place to start for this.

So, these are a few appliances on which you can spend money without thinking much. All are multi-purpose. Don’t worry about their cleanliness as they are easy to maintain without frequent repair or replacement. Be healthier than before by bringing the best kitchen appliances at your home today!

Go to top

Coronavirus pandemic triggers banks to improve cyber security

June 18, 2020

By Alyn Hockey, VP Product Management, Clearswift

At the time of writing (June 2020) the world is tentatively emerging from the coronavirus lockdown that we have all been living through for the past three months. The cost to human life and health has been unprecedented and beyond that, the global economy is set for a period of turbulence and uncertainty as we look to rebuild and refocus on normal life.

Banking and the wider Financial Services (FS) sector is undoubtedly vulnerable and facing a period of change. During the lockdown itself, banks have faced many challenges: the logistics of most of the workforce suddenly working from home; customers unable to speak face-to-face with advisors; the pressure applied by the overall economic uncertainty and a wave of increased cyber-attacks.

FS cyber security is challenging enough at the best of times. Clearswift research in 2019 revealed that 70% of financial companies had suffered a cyber security incident in the last 12 months. Less than a quarter of the respondents felt they had an adequate level of budget allocated to cyber security within their firm.

What fresh cyber security threats has coronavirus brought along in its wake and how can banks use this pandemic as an opportunity to improve its overall cyber security strategy?

The cyber threat facing banks

The multiple threats that FS firms face can be categorised into two distinct camps – to steal or to disrupt. Stealing personal data that maybe used to compromise customers through their identities being stolen, which in turn can lead to their accounts being ransacked.

Disruption, due to political reasons can disrupt the trading of an FS firm and could result in a loss of revenue. Both types of attacks carry similar consequences: reduced business and reduced customer confidence and the risks of heavy fines if personal data is comprised.

Cyber criminals have not been slow to utilise these threats during the coronavirus crisis and with banks operating in a state of greatly heightened anxiety, are more vulnerable than they might be usually. With people concerned about the current situation, banks are receiving more queries from customers about short-term loans and for general business advice and attacks could come from such a route.

There has also been a spike in coronavirus-based phishing campaigns. These are well-crafted, look authentic to the untrained eye and are designed to trick people into opening them. These campaigns prey on people’s concerns about the current crisis and who are more likely to click on a malicious link now than they usually might be.

Homeworking even when not in the grip of such a crisis has security issues, but with many FS employees working from home during the lockdown, there have been further security concerns. Staff may be tempted to access corporate systems via unauthorised home systems, while other family members might use the employee’s laptop or device at home – kids printing out their homework, checking personal email – and this can be an easy route in for a hacker using phishing or social engineering lures based on coronavirus.

It’s also true that homeworkers lack the usual office-based security measures – no web gateway security, intrusion detection/prevention systems.

Addressing the threat

Part of the problem for banks in mitigating the threat is that the threat landscape is so wide, varied and evolving. Malware, ransomware and phishing are all still widely deployed tactics, while social engineering techniques, weaponised documents and weaponised websites change all the time. Keeping up with what is going on is a major challenge for any FS firm and especially so during the coronavirus, with internal security teams stretched in a number of different directions.

Ideally FS firms will have already prepared for being breached and will review this process regularly. Assuming they’ve not created a breach response playbook there are several things they will need to do. Identify how the attack happened and work to contain the situation so that it doesn’t continue. This may involve taking systems offline to perform a thorough investigation. Once they know how it happened and what was impacted and the risk assessed, the entity can start to work through the process of communicating to customers with a clear message about what has happened and how it’s being dealt with.

If a data breach concerns personal data, then the entity should contact the Information Commissioners Office (ICO) and Financial Conduct Authority (FCA) within 72 hours of becoming aware of the breach. Once the systems have been restored, then it’s a question of reviewing not only how to secure the entity better through technology and process, but also to evaluate any lessons learnt throughout the breach. When a new plan has been finalised then it should be tested through simulation so that staff can learn how to deal with the next one.

What the banking industry can learn from the pandemic

Although the lockdown has been tough for banks, and the uncertain economic future could be even tougher, it can also act as a period of learning and reflection for executives, especially around how they approach cyber security. There is a clear need to take cyber security even more seriously and up the pace of innovation and deployment of effective data protection and threat mitigation strategies. This includes working with the right technology providers and ensuring that staff are using all of the features and measures available to them.

Addressing cyber security effectively should always cover the combination of people, processes and technology, and the current pandemic allows FS organisations to look at where they are with all three. With so many employees working from home, there have had to be quick training exercises taking place to demonstrate best practice in this area and what processes to follow should any employee think they have been the victim of a cyber-attack.

When the lockdown is over it is not unreasonable to think that many more people will now work from home more regularly. All the measures that were put in place to facilitate pandemic home working should remain, but it’s also an opportunity to put in place new measures.

Such times can act as a trigger for a bank to reinforce its cyber security processes and to remind employees of the need for extra vigilance. This should certainly extend to providing advice and technical help to make sure employees are as well-protected working from home as they are from the office. The impact of coronavirus will be with us for a long time and no FS organisation wants the additional headache of a serious security breach.

Go to top

About the Author

Alyn Hockey is VP of Product Management at Clearswift. Alyn has had an extensive career in cybersecurity, co-developing the MIMEsweeper range of products and working across departments within Clearswift, managing technical support, research and currently product management.

A techie at heart, Alyn spends much of his time talking to customers about the latest technologies and presenting on product lines, gathering information on how to improve those product lines to meet customer demands and the ever-evolving cyber threat.

Why the Technological Process Does Not Affect Our Interest in Slot Machines

June 17, 2020

Why do we love slot machines? So much that there are over 1 million slot machines spread across the world—1 million in physical locations only, and it does not include the sheer number of online slots!

Today, let us take a look at the reasons why we are so fascinated with slots, even if we have the technological advancement to forget about them.

They Are Easy to Understand

Slot machines are games of chances. As such, it does not require any form of thinking. Blackjack and poker are games of skill. What this means is that if you make a bad decision and lost, you feel guilty.

The only way to win in a slot machine is to make a combo. Usually, you just have to line up at least three symbols to win. The player only has to pull the trigger to make the reels spin, and then wait for the reels to stop.

Even if slots have evolved over the years from 3-reel to 5-reel grids, the basic concept of a combo remains the same. Players do not need to learn a new technique, as everything that happens in a slot game is purely random. You cannot influence the game results, so you do not have to learn a new skill to beat it.

They Are Affordable

Most online slots require only £0.10, and you should be able to spin it. It is so unlike many games where you need to bet at least a pound or a dollar to be able to participate.

The great thing about slots is that even if you bet a small amount of money, you can win a huge prize. Some slots pay as much as 5,000x your line bet, which means that the prizes are paid out in the same proportion no matter how small your bet is.

The usual deterrent for gambling is the cost. What makes slot machine so attractive and enduring is that you can bet a penny and come out with hundreds of dollars. Even if you bet the highest amount per spin, which usually costs no more than £10, you can still win the jackpot prize, which can be as high as millions of pounds.

There are even stories of people who played slot machines for the first time and won the jackpot. Slots are loved because they are fair—and anyone who has a penny has an equal chance of winning a big prize.

There Is a Wide Variety to Choose from

For a long time in its history, slots only showed classic symbols. Most of these are fruits or the Lucky7. Today, there is an endless number of slot symbols—and developers have penetrated every possible industry.

Here are some examples:

Movie-branded slots
Superhero-branded slots
Alien-themed slots
Sports-themed slots

Apart from using various symbols in different industries, slot machines have also evolved. In the 1800s, slot machines used to only operate with three reels. Now, the slots operate on five reels, and some of them no longer operate on a single grid.

Here are some examples of modern slot machines.

Colossal – these are large grids that are usually made of five reels and twelve rows. Colossal grids are on the right side of the main 5×3 grid, and you do not have to pay extra to activate them.
Double grid – these are slot machines where there are two same grids, with one on top of the other. The main symbols are the same, but each grid has its set of special symbols. Slots like this do not charge double—you spin two sets of reels for the price of one.
Symbol combo – these slots are not your usual sets; in these slots, you make a symbol combo by merely matching three symbols vertically or horizontally. They are like arcade games where you only need three side by side symbols to win, regardless of tier position in the reels.

Multiple grids are not the only evolution of slot games. Today, there are wilds, scatters and other bonus symbols that can trigger a wide variety of bonuses and jackpot rounds.

They Give Us Pleasure

When you spin the reel of a slot machine, you anticipate if you win. It creates a build-up in your brain. If you landed a winning spin, your brain releases dopamine. For a fleeting time, your attention is focused on the screen, and you experience a short kind of high.

Dopamine is a hormone that gives us the feeling of pleasure. What makes slot machine so addicting is that you never know if the next spin is going to reward you with the big win. It is this anticipation that keeps us hooked to it

It also has what is called a near-miss mechanic. Many times, you spin the reels and miss only one symbol, and you would have made a big win. Your brain thinks that if you are lucky to miss only one symbol, then your succeeding spins may be the winning round to get that most coveted jackpot prize.

As a result, our brain begins to develop a behaviour of anticipation, which can only get fulfilled after landing a win, regardless of the size of the prize.

Summary

Slot machines will be here to stay. They have endured the test of time. Slots have been around for 200 years, and they are not going anywhere.

At best, we need to accept that these one-eyed bandits are truly a part of our culture. They are mesmerizing, to say the least, and they can be addicting. Slots are the best example of the enduring quest of humans to beat the odds, and they have already found their way in our social lifestyle.

Slots today are free to play. You can find them in slot review sites, demo sites, games developer sites, and even social media platforms. These free slots no download no registration are played everywhere, and what we need to do is to exercise caution to protect our money, instead of shunning these machines that we have so loved for over two centuries.

Go to top

Weighing in on the Role of Sukuk in Combating COVID-19

June 16, 2020

By Greget Kalla Buana

The Coronavirus Disease (COVID-19) has not only caused a serious health crisis, but has also had pressing economic, social, and political ramifications globally. According to the IMF, the economic impact is worse than the 2008 recession. Many countries have incurred higher foreign debt, including Indonesia. The World Bank has estimated that the outbreak will slash the country’s economic growth to 2.1 percent.

Having the largest Muslim population in the world, people in Indonesia pay much attention to the lockdown strategy exemplified during the lifetime of Prophet Muhammad as a hadith says, “If you hear of a plague in a land do not enter it; and if it breaks out in the land where you stay, do not leave.” Some also refer to the Prophetic manners, which is to cover the mouth when yawning and sneezing.

In addition to that, zakat as an Islamic charitable giving whose potential collection up to US$16 billion has been in the spotlight. Zakat, along with other Islamic donations, such as infaq, sadaqah, and waqf are acting as a reliable social safety net in the society. Islam has more than that, including financial stimulus for the battle against the outbreak.

The Government of Indonesia issued US$4.3 billion in bonds to combat the current economic turmoil which may threaten the achievement of the SDGs. The dollar-denominated bonds are part of Government’s plan to complement the fiscal measure. Despite being issued amid the pandemic, the bonds are not pandemic bonds.

Pandemic bonds are a type of catastrophe bonds (CAT bonds) or insurance-linked securities (ILS)—an investment vehicle whose values are driven by insurance loss events issued by insurance company, financial institutions, and governments—to protect against the cost of a pandemic by transferring specified risks from issuer to investors. Investors receive higher coupons in compensation for the risk of losing the principal upon occurrence of qualifying perils, and the issuer receives the money to cover their losses.

CAT bonds have been issued around the world, most notably in Africa (Democratic Republic of Congo, Kenya), Asia (Japan, Philippines), and Latin America (Chile, Colombia, Mexico, Peru), which comprise natural disaster and adverse climatic conditions, such as drought, earthquake, flood, hurricane, tsunami. It bolster the case for Indonesia to issue these bonds considering three major disasters occurred in 2018. Since the ongoing outbreak can be construed as a natural phenomenon, the same approach can be used to issue pandemic bonds.

In 2017, the World Bank launched the first pandemic bonds worth US$500 million scheduled to mature on July 15. Unfortunately, COVID-19 has threatened losses that the bonds would likely pay out. Since the bonds require certain death rate to occur as part of its trigger criteria, they have been criticized as “nonsensical”.

Given that Indonesia holds the lead in regularly issuing sukuk (Islamic bonds) it is timely to explore them as an alternative solution for the current financial conjuncture.

New formulas to old problem

Sukuk are a good way to access large scale financing by structuring instruments that promote social good through risk sharing. Unlike conventional bonds which are essentially debt, the underlying asset in sukuk should be considered. As sukuk grant partial asset ownership, investors have the right to receive profits, meaning that selling sukuk is selling benefits of the ownership. Combining sukuk with other Islamic finance instruments is interesting.

First, sukuk retakaful. Takaful is an Islamic insurance where members pool money to protect one another against loss. It is based on tabarru’ contract of which a portion of the contribution is treated as donation, hence, it is not solely for commercial purposes. According to a report by IMARC Group titled Takaful Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2020-2025, global takaful market reached US$23.7 billion in 2019 and projected to reach US$48.1 billion by 2025. The growing takaful market has resulted in much greater demand for retakaful—a shariah-compliant reinsurance—due to limited capital to cover the whole risks in takaful portfolio.

In conjunction with CAT bonds, reinsurance shifts part of the risk to strengthen insurance sectors in spreading losses to a wider group of risk carriers. This risk-sharing is important in the case of CAT bonds whose risk is low in probability, yet high in severity. CAT bonds are an example of conventional insurance securitization—transforming illiquid asset into securities—which transfers risks from issuer or sponsor to capital market investors. Such scheme, by definition, is a reinsurance mechanism.

In Islamic securitization, asset-backed is the most suitable method due to the transfer of assets as well as the most effective in preventing crisis, especially if the likelihood of moral hazard increases. Sukuk retakaful are one way of takaful securitization. Both sukuk retakaful and CAT bonds are uncorrelated with the financial markets and unaffected by economic conditions that make them more appealing to investors. They solely rely on predetermined catastrophe incidents. Consequently, the coupons are stable even when the market goes down.

However, sukuk retakaful, by concept and structure, are different from any regular sukuk of which principal must be returned to the investor. Sukuk retakaful are basically insurance securitization, which are structured for a relatively short-time maturity (three to five years) and expected to be purchased by institutions, namely mutual funds, pension funds, sovereign wealth funds, not individual. Investors receive a coupon that is greater than other fixed-income securities for two actions: contributing money and bearing catastrophic loss when it happens.

Unlike CAT bonds that expose investors to the risk of substantial losses when triggered, sukuk possibly provide a different attitude since the issuance of sukuk retakaful promotes an asset-backed securitization to investors. The risk of loss can presumably be modified using sharia-compliant pricing model as well as the presence of underlying assets in sukuk. Although existing studies on sukuk and takaful do not document the practice of sukuk retakaful, merging the distinctive feature of sukuk (asset-backed) and the nature of takaful (tabarru’) can be an innovation to boost both financial and real economy.

Second, waqf sukuk as known as cash waqf-linked sukuk (CWLS). A social investment where cash waqf invested in sukuk. This type of sukuk does not require the actual coupon to be given to sukuk holders, but harnessed to finance social projects. The principle of perpetuity that preserves the waqf asset and redistribute the benefits distinguishes it from other endowment or charitable fund.

The Indonesian Government, for the first time, has issued CWLS SW001 through private placement in March. The Rp50 billion (US$3 million) sukuk is for five years with investment returns in the form of discount and 6.15 percent coupon. The discount, which is paid once at the beginning of transaction, is used for renovation and provision of medical equipment to support the development of Retina Center at a waqf hospital Achmad Wardi while the coupon is paid every month to finance free-of-charge cataract surgery services at the same hospital. It demonstrates how exactly waqf sukuk multiplies the benefits.

Through Presidential Decree No. 7/2020, Government appointed the National Disaster Mitigation Agency (BNPB) to lead emergency measures regarding COVID-19 considering it as a catastrophic plague. Financing disaster recovery is governed in accordance to Law 24/2007 on Disaster Management of which the Government is responsible for relief operation, infrastructure reconstruction, and financial assistance. The Agency has estimated an ideal disaster fund of Rp15 trillion annually. However, the available resource is away from that figure. How can waqf sukuk help address this gap?

Through private placement, waqf sukuk can be expanded to the market without excluding individual participants. Since there is approximately US$12 billion cash waqf potential stored in the society, financial intermediary institution eligible to receive individual cash waqf should be present to increase the collection of cash waqf. The more people donate cash waqf, the higher value of sukuk can be issued.

The next waqf sukuk issuance is expected to put in a framework of COVID-19 responses. In the context of unprecedented pandemics, waqf sukuk helps provide additional amount as part of front-loading strategy. Proceeds of the sukuk can be used for building additional infrastructure while the return can support relief operation and financial assistance, in particular provision of personal protective equipment, cash transfer or cash-for-work for those losing their jobs.

Third, murabahah sukuk. A less commonly used sukuk structure, which is intrinsically a sale and purchase agreement based on shariah principle. Murabaha itself is a contract of sale at an agreed cost-plus-profit, hence, the murabahah sukuk include a disclosure of the original cost and the mark-up price.

In 2014, vaccine sukuk using murabahah sukuk structure were issued by International Finance Facility for Immunization (IFFm) for US$500 million to help finance the immunization program with Gavi, the Vaccine Alliance. It was followed by $200 million vaccine sukuk one year after signaling warm market reception. The vaccine sukuk brought the concept of socially responsible investing to the market by delivering social returns to the world in the form of live-saving mission.

In late 2018, IFFm completed a private placement of US$50 million vaccine sukuk with Islamic Development Bank as the investor. To date, there are many COVID-19 candidate vaccines under development. Nevertheless, it requires commitment in terms of funding from governments or any supranational entities. Vaccine sukuk is a proven solution that worth tapping into.

Global sukuk issuance is set to grow modestly in 2020 with a projected increase to nearly US$75 billion (US$71 billion last year) according to rating agency Moody’s. Within the last 15 years, the overall growth of sukuk market amounted to a compound annual growth rate of 30.6 percent (Islamic Financial Services Board, 2019). It is the fastest growing segment of Islamic Finance industry.

In Indonesia alone, domestic sukuk market has not been significantly affected by the COVID-19. The Government has absorbed Rp14 trillion (~US$900 million) through 10 series of Sukuk Negara just within last month with Rp25.1 trillion oversubscribed. Thus, sukuk appetite is relatively high amidst the pandemic.

Ethical finance that is put to social and environmental use is getting massive concern during this pandemic. Islamic finance incorporates social elements, even within its commercial universe. Sukuk aim for such a social good and can potentially be leveraged to help combat the COVID-19. By attaining business goals in a way to benefit the society as a whole, sukuk eliminate the counterintuitive issue.

Lastly, development investment must be ‘fit for purpose’. To build back better after COVID-19, prospective and corrective measures need to be integrated. The above-mentioned sukuk can manifest both of them along with social intention to increase resilience of human and the planet.

Go to top

About the Author

Greget Kalla Buana is an Islamic Finance Specialist graduated from Master of Islamic Finance and Management, Durham University, the United Kingdom. His work experiences have always been in Islamic Finance sector, such as Dompet Dhuafa, Islamic Banking Department of Indonesia Financial Services Authority, and United Nations Development Programme.

What Effective Trading Strategies Can Be Used During COVID-19?

June 16, 2020

In the post COVID-19 era, remote occupations, including e-Commerce, virtual education, counseling, banking, and communications are going to dominate. But what of trading strategies?

In a Post COVID-19 Economy What Trading Strategies Might Work?

The world has witnessed the wrath of the coronavirus on a mass scale. Unfortunately, the damage is far from done. Pain, suffering, and loss of life has been coupled with unprecedented economic chaos, with hundreds of millions of people left jobless, wondering how they are going to pay for basic necessities. As the global economy slows to a crawl, and personal disposable income dries up, individuals are forced to make really hard choices. As a trader in the post COVID-19 economy, different types of trading strategies must be employed now, given the new normal we are all faced with.

For one thing, the global economy has undergone what economists call a shift. When these shifts occur, the ‘demand and supply’ curve abruptly moves in a different direction. This necessitates a rethinking of conventional trading methodology to accommodate new market conditions. The effectiveness of remote work is evident for all the world to see. Office workers that traditionally commuted to work, interacted face-to-face, and completed tasks in person are now taking their vocations, skills, and abilities online. This is having far-reaching implications for the global economy.

Even with the lifting of restrictions, and the loosening of social distancing, there has been a paradigm shift in the workplace, in the retail arena, and in all forms of economic interaction between human beings. As a trader, one of the essential elements necessary to profit from rising and falling markets is liquidity. When liquidity levels are low, market instability results. This dramatically impacts trading strategies. Among traders, the switch to home-based trading activity has been hampered to a degree by poor telecommunications networks, and unsuitable mobile reception. In the wake of the March 2020 market crash – the worst since the global financial crisis of 2007/2008/2009, traders and investors were scampering for cover across-the-board. While certain UK and US banks maintained trading activity on the floor at the exchanges of London and New York, this was the exception rather than the rule.

The trading climate, and the strategies that are employed to profit from rising and falling stocks, commodities, indices, and currency pairs hinges upon a variety of factors – many of which are not economic in nature at all. The expressions of fellow traders, the speculative sentiment that pervades the trading floor, the actions of key market players – these elements may be noticeably absent from the scene with the new-age, post coronavirus era. Isolation brings with it a unique set of challenges which need to be adapted to current market conditions. With liquidity in question, traders embrace different strategies to profit from the ebb and flow of the market.

The Market Has Switched to Buy-Side Trading Post Coronavirus

Increased uncertainty and extreme volatility have given rise to a new normal in the trading arena. Business Continuity Plans (BCPs) have been formulated by the most strategic of all enterprises, in an effort to counter the dramatic and unprecedented changes that businesses may face. Difficulties are part and parcel of the trading realm, but few people could have anticipated the devastation brought about by the global pandemic. Businesses which have successfully negotiated the coronavirus pandemic have done so with meticulous planning. It begins with the fusion of contingency planning, IT, and risk management elements. By putting these plans in place, several businesses have successfully moved away from buy-side activity to work from home activity. A myriad of challenges exists; notably security of access to servers from outside of business organizations.

From a trading desks perspective, this new normal requires ongoing innovation, distributed risk, and integration between external systems and internal systems. Massive and unprecedented investments in new technologies are needed to benefit from the new milieu. Research and development, AI, AR, algorithmic systems, pricing engines, and new strategies are needed. The new strategies will encompass things known as portfolio life-cycle solutions, with a tech-driven approach to activity. New tools and resources will need to be developed and implemented to facilitate buy-side traders in these volatile markets. Multi-dimensional trading processes will need to be simplified and optimized for the new normal.

How Are Traders Benefiting from the Volatility?

In March 2020, global bourses collapsed. What followed was whipsaw activity, with markets rising and falling at an unprecedented rate. This type of uncertainty is not for the risk averse; it is risk-on to the extreme. One of the key measures of volatility – the VIX – rose dramatically in Q2 2020, with the CBOE volatility index (VIX) averaging 32.83 in 2020 to date, opening the year at 12.47. This is double the average closing price of the VIX in 2018, and more than double the average closing price of the VIX in 2019. When volatility levels are high, people are selling stocks en masse. Known as the ‘Fear Index’ the VIX is an important measure of trader sentiment and it certainly factors into the type of trading strategies that are employed.

Important Trading Strategies Come to Light

Several important trading strategies have come to light in recent times. These must be viewed against the structural changes that society is undergoing as it pertains to socio-economic systems across the board. No doubt there has been a dramatic widening of the wealth gap between poor countries and wealthy countries. This is to be expected. However, the disequilibrium will move towards equilibrium over time. In the interim, there is plenty of money to be made by trading on systems, practices, technologies, and innovations that will bring about the rebalancing. Currencies like the GBP, EUR, USD, CAD, and JPY are being traded as emerging market economies start to show structural cracks post-virus. Investors tend to pull their resources from unstable regions with high volatility, in favor of lower-risk opportunities. At a time where runaway growth is an anomaly, developed economies are proving to be a safe haven for traders. Of course, there are many opportunities in developing countries for savvy traders to benefit from.

Industries that have been hamstrung include travel and tourism, including airlines, cruise ships, hotels, restaurants and the like. Pharmaceutical corporations working on vaccines, plasma, and antibody testing are showing promise. Day traders have increased in number at independent trading platforms across the board. As people stay home and try to earn their keep, they are turning to penny stocks and implementing short-term day trading tactics and strategies to shore up their portfolios and grow their net worth. While oil prices have cratered and rebounded, gold has shown resilience as a hedge against portfolio erosion. By focusing on a mix of tradable instruments which can mitigate the impact of a tsunami of negative sentiment, it is possible to prevent loss and turn a profit.

Go to top

8 Signs Your Business May Need Executive Coaching

June 15, 2020

Executive coaching is something most businesses can benefit from, no matter their size or the stage in their development. Executive coaching allows decision-makers to make better decisions, stay on top of the most recent advancements and developments, positively influence teams & key players, and provide much-needed assistance in times of change
It can also help you find issues within your organisation’s structure that could affect collaboration, communication, accountability, performance, and efficiency. However, too many businesses still don’t realise the importance of Sigmoid Curve, coaching, or how their business could gain from it. Here are 8 signs your business may need executive coaching.

You Can’t Break Out of the Rut

Personalised executive coaching may be the next step when team building seminars and a steady stream of consultants haven’t been able to break your organisation out of its rut. Helping individual leaders identify their weaknesses and build on their strengths could help them do better. Alternatively, it may help them deal with the issues holding their teams back like customer retention, sales closing rates, or employee productivity.

Your Business Is Unable to Move Forward

It is easy to keep doing what you’ve always done. The problem is that the business world is always changing, and your traditional customer base may be changing or passing on. Competitors who are more willing to adjust to new market realities will be able to out-compete you. There are also cases where technology may be eroding demand for your product. There can be a number of obstacles to your business growth, During that time you can consider finding a business coach who will help you throughout the path of developing your business. Some of the items that the coach will help you include: developing an entrepreneurial mindset, time management strategies, gaining more customers, creating business systems and many more.

The worst is that some businesses are unable to change out of a lack of vision. They may become paralysed as a result, and prefer staying in their comfort zone, even if it means steadily losing market shares. Others will try all sorts of different strategies with no rhyme or reason, and wonder why they’re failing. Executive coaching could help your upcoming leaders become the visionary you need to pivot the organisation, and introduce them to new methodologies that could have effects on the whole organisation.

You Can’t Retain Middle Management

One sign of problems in the organisation is a lack of cohesion in the C-suite. This becomes worse if you’re dealing with constant turnover. High turnover rates also affect middle management, which can have future implications for your business. For one, your organisation is losing experienced middle managers who could’ve eventually become leaders in the C-suite. And, if you can’t retain middle managers, chances are you’re losing a lot of their loyal team members too.

A potential solution to both issues, however, would be to use coaching for executives. Senior management coaching could reduce turmoil at the top level of the organisation, calming the churn at the next level of the organisation. You could also use executive coaching to cultivate the next generation of leaders. This can be done through The BCF Group who provide one on one coaching geared towards executives and senior management. Through the executive coaching from BCF Group, they’ll learn how to set priorities, accept feedback, and evaluate challenges. Their coaching doesn’t only focus on the business aspect either; it helps executives find a better work-life balance, which will eventually lead to less turnover.

Another benefit of offering executive coaching for middle managers is that it may reduce the conflict and stress senior executives deal with. You’re also demonstrating to these middle managers that the company values them and sees a bright future for them with the firm. Furthermore, you might eliminate the blame game that results in good people being fired instead of the real root cause being addressed.

Morale Is Low

Low morale impacts your business in a variety of ways. Not only does it have a direct impact on turnover, but it could also result in lower productivity. In some cases, it could end up in a negative workplace culture that turns off potential customers.

If you want to turn things around, it often has to start at the top. Executive coaching can help the business’s leadership make the necessary changes to improve morale over the long-term. For example, they can help a manager break out of a negative mindset that is pulling everyone else down.

There’s Too Much Drama at Work

Dealing with customers and business disruptions is a normal but stressful part of the job. However, there is a serious problem if there is too much drama at work. This might be due to managers overreacting to any problems that arise or lacking the soft skills to deal with problems in a peaceful manner. Or people at all levels may be rushing to snap judgements and acting based on assumptions that get in the way of both communication and problem resolution.

Executive coaching can teach managers soft skills, conflict resolution, and how to maintain perspective. This will reduce the number and impact of volatile situations, and there will be far less risk of key personnel quitting at random.

Your Business Lacks Clear Goals

While a wide majority of businesses will have goals, they’re not always the most productive. Many will lack clear goals, and not understand why they aren’t making any progress. This might be because they have no real mission or are using bad strategies. This is where you could use a fresh outside perspective.

An executive coach can help you come up with simple business goals tied to your overarching vision that can be clearly communicated to your team. You might be surprised by what they could do if you set the right key performance indicators. A coach can also help you make decisions so that you’re always moving toward your desired end goal.

You’re Personally Compromised

There are some cases where conflicts of interest could stop you from making the correctives needed, or you may be too close to the situation, project, or the people involved. It can sometimes be difficult to be objective when it comes to a pet project or reprimand someone who you’re personally close with. An executive coach will be able to come in without bias, and will also be able to address possible internal issues without creating personal rifts.

You Have Doubts on the People You’ve Assigned

Through our expertise, evaluations, and personal experiences, we gain a general sense of IT staff augmentation and who would be a good candidate for certain roles. But there are times when we have to admit that we were wrong. Still, this could all be interference, and you might see inexperience as incompetence in some cases.

What an executive coach could do is come in and evaluate the leaders in your organisation. They will then be able to validate your choices or concerns. They could also work personally with some of your executives to help them develop the skills and aptitudes needed to fill their role better. Or they might make recommendations as to where they would be more suited.

Executive coaching can transform both individuals and organisations, and it is an invaluable resource for any business. It can help you overcome the hurdles holding you back or determine your path for the future so that you can move forward with confidence. But, more importantly, it will be an investment in your most valuable players, and help them realise themselves while reinforcing cohesiveness and loyalty.

Go to top

The Ugly Side to the Beautiful Game: stemming the illicit flow of money through FIFA

June 15, 2020

By Peter FitzGerald and Amalia Neenan

“Every game should have a winner. When you play cards or any other game, there’s always a winner and a loser.”

Former FIFA President, Sepp Blatter

Kick-offs and kickbacks

The comfort of a pleasant daily walk and a Netflix binge for solace has become the new normal in the midst of the Covid pandemic. Whilst some of us have been distracted by settling into a new TV series (or seven) others have been left wanting. One quintessentially British aspect of normal life has been conspicuously absent: televised sports – most notably football. Not since September 1939, when war was declared for the second time in Europe, has this disruption been so obviously felt. With the 2020 UEFA European Championships re-scheduled to take place next year, and most major European leagues suspended, it is uncertain when the industry will be kick-started again. Realistically, if the Euros are pushed-back further, the next hotly anticipated event will be the 2022 FIFA World Cup. Even then, this may not be set in stone – but the virus should not be shouldered with all the blame on this occasion.

Cast your minds back to 2015, when ‘Corona’ was just the name of a light beer. The news dominating the headlines were the high-profile arrests of seven executives embroiled in the Fédération Internationale de Football Association (FIFA) bribery scandal, as they were escorted from a luxury Zurich hotel. The FBI’s investigation culminated in the US indicting a plethora of FIFA officials on the basis of ‘rampant… and deep-rooted’ corruption linked to (amongst other things) the winning bids awarding the 2018 and 2022 World Cups to Russia and Qatar respectively. The wide-reaching and ongoing inquiry has resulted in 26 guilty pleas and 42 indictments to date, with perhaps the most shocking turn of events being the fall of the then FIFA President Sepp Blatter.

Russia and Qatar have denied any wrongdoing throughout. However, rumours have continued to abound and now it appears that they have not been without merit. In the latest twist to the saga, US prosecutors last month accused both nations of having bribed FIFA officers to secure the coveted hosting spots. Never before has an indictment connected with the scandal been so observably clear. These allegations were made by prosecutors in an indictment that has charged a range of actors, including marketing company Full Play Group SA and former media executives from 21^st Century Fox with crimes such as money laundering and wire fraud for their roles in improperly securing marketing rights and television coverage for both World Cups. The indictment states that the former presidents of the South American governing body, Conmebol, and the Brazil Federation (Nicolás Leoz and Ricardo Teixeira) had received bribes to vote for Qatar. The presidents of Concacaf (the North, Central American and Caribbean governing body) and the Guatemalan Federation were allegedly bribed in respect of casting their votes for Russia. The Fox execs, Hernan Lopez and Carlos Martinez, were named in April’s indictment as having paid Conmebol representatives to secure broadcasting rights.

It now appears that we will be treated to a new development each month, with May heralding the news that Israeli bank, Bank Hapoalim B.M. (BHBM) and its wholly owned subsidiary, Hapoalim (Switzerland) Ltd. (BHS) were also involved in the fraud. Both entities have entered into a three-year non-prosecution agreement and have agreed to pay the Department of Justice over $30 million, after admitting to conspiring with marketing execs, including those at Full Play Group SA, to launder over $20 million worth of football kickbacks and bribes from December 2010 to February 2015.

Penalty shoot-out

With allegations, and indeed admissions, such as these, is it likely that Qatar will hold onto the hosting title in the run up to the Cup? Sepp Blatter has recently proffered that the US could take over should the nation be stripped of the accolade amidst the controversy. A distinctly American flavour appears to be emerging. The US has led the charge in investigating the rampant criminality, but is this likely to continue? Will other jurisdictions join the fray? As the scandal involves a variety of international components, not least the cornucopia of shell companies from different countries used to facilitate bribes, different nations may take it upon themselves to launch their own investigations. The UK, for example, would be the obvious next choice, due to the wealth of anti-corruption laws that could easily be engaged.

Take for instance section 328 of the Proceeds of Crime Act 2002. What happens if those indicted are found guilty? As the charged acts detail the bribery of officials to secure Russia’s and Qatar’s hosting bids, any venture associated with these games could technically fall foul of section 328(1), whereby it is an offence if a person ‘enters into or becomes concerned in an arrangement which he knows or suspects facilitates (by whatever means) the acquisition, retention, use or control of criminal property.’ Such an arrangement could constitute the acquisition of the commercial/broadcasting rights associated with each World Cup. Could the UK entities who secure these rights to the Qatar games be guilty of the offence of entering into an arrangement that facilitates illegality? Furthermore, might this also extend to the companies who secured the rights to the Russia tournament? There have been concerns as to the legitimacy of the Russian win for years, and section 328 merely requires the ‘suspicion’ that stipulated arrangements would facilitate wrongdoing. Whilst there is no formalised UK investigation as of yet, it is not so far removed as to speculate that there might be one in the future.

They thought it was all over, it is now!

“The profiteering and bribery in international soccer have been deep-seated and commonly known practices for decades,” states FBI assistant director-in-charge, William F. Sweeney.

A decade after the initial investigation, the full-scale of the corruption is still being unearthed, with the intricate web of money and deceit proving to be as complicated as the off-side rule. FIFA, as the governing body of international football, has not necessarily been doing a lot of ‘governing’!

In a surprise move and to allay fears, the body’s ethics committee conducted its own investigations into corruption, which essentially cleared Russia and Qatar of buying votes. How can this be when the evidence against them continues to mount? Unsurprisingly, the reignited media attention has increased pressure on FIFA to re-open the inquiry. Whether this happens remains to be seen. In the meantime, what is more likely is that independent prosecutorial bodies jump into the mix. These new-found allegations could potentially lead to an array of trickle-down prosecutions in different jurisdictions, with the UK easily placed to pounce efficiently and effectively as and when the time is right.

Go to top

About the Authors

Peter FitzGerald is an Of Counsel at Peters & Peters Solicitors LLP and has extensive expertise in financial crime, particularly in cases involving allegations of serious fraud and corruption, and has significant experience in successfully challenging Interpol Red Notices.

Amalia Neenan is a Legal Researcher at Peters & Peters Solicitors LLP.

Redirecting Islamic Banking through Sharia Audit

June 14, 2020

By Yunice Karina Tumewang and Vita Arumsari

Gaining public trust is the key to the progressive development of Islamic banks. The growth of Islamic banks has slowed down in recent times, and we need to make a kind of “breakthrough” to boost it again. Compared to its conventional counterpart, it had different beginnings in the business. Conventional banking had a head start a long time ago, and was rooted in an economic system. This was followed later by the emergence of Islamic banking, with its growth failing to match that of the Muslim population. After the 2008 economic crisis, it was clear that Islamic banking had survived the shock. Even so, we still need to improve society’s trust in Islamic banks. People in Indonesia, primarily a Muslim society, need to be certain that Islamic banks are operating differently, based on Islamic principles. Islamic banks should be the locomotive for taking care of ethical and social aspects in delivering their services to their customers and related stakeholders.

According to Aishah, Ali, Muhammadun, et al. (2015), there has been a discrepancy between banking needs and market offers. Listening to the experiences of customers, it is frequently found that Islamic banks fail to deliver ethical services to their clients. To give assurance to the customers, it is crucial for Islamic banks to conduct sharia audit on their reporting, both internally and externally. Sharia audit is an independent exercise that aims to examine the effectiveness of internal control for sharia compliance within the organisation. It results in a statement regarding the compliance of an Islamic bank in its operations with regard to such matters as fatwa (non-binding legal opinion on a point of Islamic law given by a qualified jurist), the AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) standard, the Sharia accounting standard at the national level, and relevant existing policy/regulations in the country.

Indonesia has declared its intention to adopt the AAOIFI standard and, with the release of a new standard for external audit, is expected to show consistency and commitment by being prepared for this standard. In fact, however, we could find hardly any evidence that serious preparation has taken place. It is widely known that there is still an inadequate supply of external sharia auditors compared to the escalated growth of IFIs in Indonesia. A number of auditors who conduct auditing for Islamic banks are trained in sharia but do not hold a degree in sharia auditing. On the other hand, the number of people who are taking professional degrees is also still below the minimum standard.

Hence, as the industry awaits the arrival of more sharia accounting graduates to take up their responsibilities, the current situation should encourage external sharia auditors to apply the new AAOIFI standard of external audit in order to bring uniformity and to provide clarification with regard to what is to become the international standard. The measurement of this different standard might result in additional work, and its implementation will require some readjustments to be made. In the context of free trade, it should have the effect of prompting industry to adopt an international standard. The uniformity of the external sharia audit standard has put the industry at ease. It is to be applied not only locally, but internationally. In short, it simplifies the work of those who have the authority to regulate the auditing operations of Islamic banks.

Despite the issues conventional banks commonly face within risk management, in Islamic banks there are two additional risks, namely profit share and compliance risk, to be considered. In this regard, there are three institutions that have an essential role in keeping external sharia auditing up to standard. Firstly, DSN-MUI (National Sharia Boards of Indonesia) plays a crucial role in managing the product compliance of IFIs, particularly Islamic banking. DSN-MUI has been a safety net as an institution for educating people in terms of its aqad (agreement). An external sharia auditor should have a good understanding of the product contract, in order to understand and audit the financial report meticulously. The fact that financial products should comply with the Islamic principle means that bookkeeping can be guided in the right directions. Furthermore, a bank cannot be considered Islamic unless it applies contracts correctly in its everyday business, since this relates to Islamic religious principle. The correct application of that principle has the potential to accelerate the process of gaining society’s trust.

Nevertheless, the correct application of principle will be futile unless the audit is carried out using the correct sharia auditing standard – in this case, the AAOIFI external sharia auditing standard. DSN-MUI could be the first layer of authority for Indonesia, punishing those whose products are not sharia compliant, as this is a difficult, yet crucial, goal to be achieved. By adopting this procedure, it is expected that every banking institution will follow the rules and improve society’s trust not only in the ability of banks to generate profit and protect their assets, but also to act in accordance with sharia principle.

Secondly, all auditing firms should be in control of this. Most IFIs use multinational auditing firms for their big names in order to earn public trust. Hence, it has been the responsibility of auditing firms to keep their practice on track. Thirdly, and alternatively, an international auditing standard-setter such as AAOIFI might lend a hand to ensure a fair and appropriate understanding and implementation of the standard. By doing so, there is little likelihood of a disoriented operation of external audit in Islamic banks in Indonesia. Last, but not least, we cannot ignore the role of auditing certificate institutions in keeping the quality of the certification of audit qualification holders up to standard. This will have the effect of redirecting the industry towards the path on which it should have been from the very beginning.

Go to top

About the Authors

Yunice Karina Tumewang, S.E., M.Sc. currently serves as a lecturer at the Accounting Department of Islamic University of Indonesia. She earned her Master Degree in Islamic Finance from Durham University, United Kingdom. Her research interests are Islamic Banking & Finance, Islamic Pension Fund, Islamic Accounting, and Islamic Social Finance.

Vita Arumsari’s a researcher and lecturer in one of the vocational-based Universities in Indonesia with interests in Islamic finance, poverty alleviation, and management. She earned a master’s degree in Islamic Finance from Durham University, the United Kingdom.

How to Avoid An Existential Crisis With Everything Going on in the World

June 13, 2020

There’s no dancing around the fact that 2020 has been a wild ride so far. From the Australian bushfires to COVID-19, to a near-miss with North Korea, and now protests calling for racial justice, the world can seem like a pretty dismal place. Humans have struggled since the beginning of their existence. War, famine, disease, and more have beaten at the walls of humanity and threatened our existence more times than we can possibly count.

With so much adversity, struggle, and seemingly hopeless situations, what’s one thing that rings true? Mankind bounces back. We move forward. We keep taking steps toward the future. Progress is slow, people are slow to change, but there’s always a dawn ahead of us.

All philosophy aside, let’s look at how you can avoid an existential crisis in the coming months, even with the state of the world. Existential dread doesn’t have to rule your life.

The World Isn’t The Terrible Place It’s Made Out To Be

A bold statement, don’t you think? All of the news we see portrays the world as a nasty, unforgiving place where people don’t help each other, don’t care for others’ suffering, and turn a blind eye to injustice. If there’s anything we should learn from this past month’s protests, it’s that people do care. They’ve come out in the thousands to demand justice.

Look at the world’s response to COVID-19. Millions of dollars have been donated to people all over the world. Volunteers have given their time and resources to help when our governments scramble to come to grips with the reality of the situation. Our frontline workers are putting their lives on the line to make sure we get the care we need.

And what about those Australian bushfires? By mid-January, nearly $500 dollars had already been donated to helping stem the tide of the violent flames, aid animal and human rescues, and keep the country intact.

The point here is that no matter what the media, the internet, or even the people around you would have you believe, the world is actually a much better place than it’s made out to be. People do care about each other. People do come together in times of crisis. And people do want to see a positive change in the world.

Focus On How You Can Help

Did you know that science supports the claim that helping others can actually make you happier? Endorphins are released in the brain when you exercise and engage in stimulating activities; and guess what? They’re released when you help others, too. Endorphins are a sort of “feel good” chemical that can provide a feeling of happiness and fulfillment. Helping others also gives you a sense of purpose, making you feel like you belong to a community and that you’re an essential part of it.

Helping others during these difficult times is easy. Maybe you have a neighbor who’s struggling financially during COVID-19 and need financial help. Maybe you know someone who is affected on a deeper level by the protests and injustice. Or, maybe you know someone who’s taking all of these events rather poorly.

Helping out can be as simple as lending a hand with chores or yardwork or as serious as lending money. Whatever you do to help, know that lending your resources to improve someone else’s life is one of the most amazing things you can do for your community and can help you avoid those feelings of existential dread.

Do Things You Enjoy

You’ve probably got more than a bit of free time now that COVID-19 has confined us all to our homes. Whether you’re working from home, still on the frontlines, or not working at all, it’s important to remember that you can’t forget about yourself. Self-care is crucial in times of crisis.

Think of things you enjoy doing. Sure, you can’t exactly go out with your friends for a night on the town or attend a baseball game, but maybe you’ve got some favorite activities you can take part in from the comfort of your home or yard. Don’t neglect your own mental health or feel guilty about spending some time doing what you like.

If you’ve got a lot of free time, it could be the perfect opportunity to pick up that hobby you’ve been thinking about or even plant the business you’ve wanted to start since you were a teenager. Don’t let this opportunity pass you by. With free time comes ideas, and from ideas come change.

We’ll Get Through This

Mankind has bounced back from much worse than bushfires, COVID-19, and even racial injustice. The world does correct itself when people work together and care for each other. COVID-19 vaccines are already in clinical trials, the bushfires are out, and the protests have achieved several goals already.

While we can’t change the state of politics or the way things are run right now, we can work together, support each other, and lend a hand. We’re a global community; let’s act like it.

Go to top