ChatGPT in the world of business and finance

by

@mr

@mrbooks

ChatGPT in the world of business and finance (Play Edition)

Researched and written by Aamir Sheikh The founder of the kingdom of @mr FCCA, CA (CAANZ), C.A. (Malaysia), JAIBP, MCOM, BSc in Applied Accounting, Bachelors’ (Hons)

ChatGPT in the world of business and finance Edition details: Play Edition Researched and written by Aamir Sheikh The founder of the kingdom of @mr @mrbooks | good for your eyes and brain is a category of amrwebbox | manufacturing the words… www.amrwebbox.com ©Copyright 2023

ALL RIGHTS RESERVED No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the express written permission of the author or @mrbooks | good for your eyes and brain.

Published at Amazon Kindle ISBN: 9798850709808 @mrbooks | good for your eyes and brain A Category of amrwebbox | manufacturing the words… amrwebbox is a web-based division of the kingdom of @mr www.amrwebbox.com *@mr is Aamir Sheikh's (the author of this book) personal logo. It was not and is not used as a second or alternative name at the time of publishing this book.

With love to my parents, family, friends, all teachers, all mentors, all loved ones…

I love getting lost in a different world while dancing with words!

ABOUT THE AUTHOR I am Aamir Sheikh, the founder of the kingdom of @mr. Within the last 10 years, I have worked for Deloitte, EY, KPMG, and PwC. I am currently associated with PwC in its Audit and Assurance practice. I am a member of the Association of Chartered Certified Accountants (ACCA), Chartered Accountants Australia and New Zealand (CAANZ), the Malaysian Institute of Accountants (MIA), and the Australian Society of Authors (ASA).

In 2019, I won a platinum award from the Malaysian Institute of Accountants (MIA) for my article, “Role of artificial intelligence in the corporate world.” and I also got the following digital badges from EY:

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TABLE OF CONTENTS

1.

About Open Ai and ChatGPT .................................9

2.

Accessing ChatGPT ................................................. 11

3.

Pros and Cons of using ChatGPT ....................... 19

4. Adoption of ChatGPT by different organizations in the world.............................................................................. 28 5.

Finance knowledge ................................................. 33

6. Policies and Standard Operating procedures (SOPs) ...................................................................................... 39 7.

Market updates ........................................................ 53

8.

Risk Management .................................................... 57

9.

Financial Analysis ..................................................... 77

10.

Business analysis ................................................. 85

11.

presentations ........................................................ 96

12.

Business letters .................................................. 101

13.

Tax........................................................................... 109

14.

Accounting .......................................................... 116

15.

Marketing ............................................................. 127

16.

Human resources .............................................. 142

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CHATGPT IN THE WORLD OF BUSINESS AND FINANACE

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1. ABOUT OPEN AI AND CHATGPT OpenAI is a company based in the United States of America focused on researching and making programs based on Artificial Intelligence (AI).

At its inception, OpenAI was primarily focused on the development of Artificial Intelligence (AI) and machine learning tools for video games, along with other recreational purposes. In less than one year from its founding on 11 December 2015, OpenAI released one of its first AI offerings, an open-source toolkit for developing reinforcement learning (RI) algorithms, called OpenAI Gym, which is a free and open source software platform for developers.

OpenAI became a for-profit company in 2019 and is now led by its CEO, Sam Altman. It’s run on Microsoft’s Azure system infrastructure and powered by Nvidia’s GPUs. “OpenAI is an AI research and deployment company.

Our mission is to ensure that artificial general intelligence benefits all of humanity.”

(OpenAI, 2023)

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Products of OpenAI

The following are the products of OpenAI:

GPT AI based platform that can follow complex instructions in natural language and solve difficult problems with reasonable accuracy.

DALL-E This tool can create high-quality, original, realistic graphics and art based on a text description.

Whisper It can transcribe spoken words into text and translate foreign languages into English.

Artificial Intelligence (AI) is used in ChatGPT to produce human-like text and converse with people, thus the "Chat" in its name. OpenAI delves further into ChatGPT and states it is "general-purpose artificial intelligence trained to assist with a variety of tasks."

To put it simply, it is an automated chatbot that responds to text-driven questions asked by humans based on information stored in its large database. The unique feature about the chatbot is that in addition to giving you simple knowledge-based responses, it is also capable of performing several other tasks such as performing calculations, creating tables, giving sample reports, summarising data, and doing a wealth of other tasks.

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2. ACCESSING CHATGPT ChatGPT is accessible through web browsers like Apple Safari, Google Chrome, Microsoft Edge, Mozilla Firefox, and on Apple iOS devices. ChatGPT is available on the Google Play store in four countries only: Bangladesh, Brazil, India, and the US. It will roll out in other countries gradually.

Here is an example of how to access ChatGPT via a web browser and on your iPhone. In addition, here is how the iPhone user interface looks:

Accessing ChatGPT on a web browser 1.

Using any recognized and safe web browser, please access the Open AI website, “www.openai.com”, and select ChatGPT from the list of products displayed on the website:

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2.

On the webpage, there will be three options to access the chatbot, from a webpage, an Apple mobile device or the Google Play Store. To access it via a web browser, click "try on web".

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3.

In order to access the chatbot, you need to create an account by entering your email address or using one of the other options provided. It is relatively easy to set up an account to access the chatbot once you have created it. It is completely free of charge for general use, which is the best thing about it.

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4.

The chatbot is now ready for use. You can see below an example of the answer that the bot provided to the question posed to it as shown in the snapshot below:

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Accessing ChatGPT on Apple’s iPhone 1.

The first thing you need to do is go to the Apple App Store and download the official ChatGPT application as follows:

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2.

You can sign up to the app using either of the options provided below as shown in the screenshot:

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3.

You can log in to the app using either of the options provided in the application. The email option is used in the screenshot below:

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4. The application is ready for use.

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3. PROS AND CONS OF USING

Pros

CHATGPT

1. Quick response

1. No real-time data

2. Handy 3. Extensive database

2. Accuracy not guaranteed

4. Time saving

3. Privacy issues

Cons

Pros of the chatbot 1. Quick response You can ask any question to this chatbot and receive a response within seconds if you have a stable internet connection. ChatGPT's advantage is the quick response time to specific questions, which is one of its great features. As some might argue, even search engines respond quickly to search queries in seconds.

What makes ChatGPT different from any search engine on the web? As a matter of fact, one of the key differences between ChatGPT and a search engine is 19

that the latter provides several different answers to a question searched, this is not a specific response.

2. Handy The chatbot is handy for smartphone users, as they simply download the application on the phone and the chatbot is available at their fingertips. This app is reliable and authentic since it comes from the chatbot creator, which makes it more trustworthy.

You can also access the application through a web browser on a phone. For example, a phone running Google’s Android operating system. In any part of the world where you have a solid internet connection, you can use the chatbot no matter where you are.

3. Extensive database The chatbot has an extensive database and can answer all kinds of questions. It doesn't matter if your questions relate to food recipes, economics, finance, business management, accounting, science, technology, language translation, etc., you will find the answer to your questions. Please see the examples on the next few pages.

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Q: What is game theory in Economics?

ChatGPT: Game theory is a mathematical framework used to analyze strategic interactions between rational decision-makers, typically in the field of economics. It provides a way to study how individuals or organizations make choices when their outcomes depend not only on their own actions but also on the actions of others involved in the situation.

In economics, game theory helps in understanding and predicting behavior in situations where the outcomes of one's choices depend on the choices made by others. It is commonly used to analyze competitive situations, such as pricing strategies, market competition, bargaining, and decision-making in various economic contexts.

The central concept in game theory is the "game," which refers to a situation with multiple players or decision-makers who have different possible strategies to choose from. Each player's strategy affects the outcomes for all players involved. The players typically have objectives or payoffs that they seek to maximize or minimize.

Game theory analyzes various types of games, such as cooperative games (where players can form coalitions and cooperate) and non-cooperative games (where players act independently and competitively). It provides mathematical models and tools, such as payoff matrices, equilibrium concepts (such as Nash equilibrium), and solution concepts (such as dominant strategies), to analyze and understand strategic interactions.

By studying game theory, economists can gain insights into how individuals or firms make decisions in situations involving competition, cooperation, negotiation, and conflict. It helps economists understand the incentives and strategic considerations that shape economic behavior and outcomes. Game theory has applications in various fields, including economics, political science, biology, computer science, and more. ***

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Q: Would you mind sharing the recipe of risotto with me?

ChatGPT: Certainly! Here's a basic recipe for risotto: Ingredients: - 1 ½ cups Arborio rice (or any short-grain rice suitable for risotto) - 4 cups chicken or vegetable broth - 1 medium onion, finely chopped - 2 cloves garlic, minced - ½ cup dry white wine (optional) - 2 tablespoons butter - 2 tablespoons olive oil - ½ cup grated Parmesan cheese - Salt and pepper to taste - Optional: additional ingredients such as mushrooms, asparagus, peas, or cooked shrimp/chicken, as desired for variation Instructions: 1. In a saucepan, heat the broth and keep it simmering on low heat.

2. In a large, deep skillet or Dutch oven, heat the butter and olive oil over medium heat.

3. Add the chopped onion and minced garlic to the skillet and sauté until they become translucent and fragrant.

4. If using additional ingredients like mushrooms, add them to the skillet and cook until they soften and release their moisture.

Continued…

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5. Add the Arborio rice to the skillet and stir well to coat it with the butter and oil mixture. Toast the rice for a minute or two until the edges become translucent.

6. If using wine, pour it into the skillet and stir continuously until it is absorbed by the rice.

7. Reduce the heat to medium-low and begin adding the simmering broth to the skillet, one ladleful at a time. Stir the rice frequently, allowing each ladleful of broth to be absorbed before adding the next one. Continue this process for about 20-25 minutes, or until the rice is creamy and al dente.

8. If using additional ingredients like asparagus or peas, add them to the skillet during the last 5 minutes of cooking.

9. Once the rice is cooked to your desired consistency, remove the skillet from heat. Stir in the grated Parmesan cheese and season with salt and pepper to taste.

10. Let the risotto rest for a few minutes before serving to allow it to thicken slightly.

11. Serve the risotto warm, optionally garnished with extra Parmesan cheese, fresh herbs, or a drizzle of olive oil.

Note: Risotto is a versatile dish, and you can customize it by adding different ingredients and seasonings based on your preferences. This basic recipe serves as a starting point, and you can experiment with various flavors and textures to create your own unique risotto variations. Serve the risotto warm, optionally garnished with extra Parmesan cheese, fresh herbs, or a drizzle of olive oil.

Note: Risotto is a versatile dish, and you can customize it by adding different ingredients and seasonings based on your preferences. This basic recipe serves as a starting point, and you can experiment with various flavors and textures to create your own unique risotto variations. ***

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Q: Please tell me a famous quote of Bill Gates?

ChatGPT: One famous quote by Bill Gates is: "Success is a lousy teacher. It seduces smart people into thinking they can't lose." ***

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4. Time saving Individuals or organizations can save time using ChatGPT. For example, organizations around the world use ChatGPT technology for drafting business letters. It saves time and money for any organization.

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Cons of the chatbot 1. No real time data One of the biggest disadvantages of the platform is the inability to provide real-time responses. As an example, if you ask it what the current weather is in a city now, it will reply that it does not have access to realtime weather data.

Q: Could you please let me know what the current weather in Miami is like?

ChatGPT: I'm sorry, but as an AI text-based model, I don't have real-time data or the ability to browse the internet. My training only goes up until September 2021, and I don't have access to current information such as the weather. However, you can easily check the current weather in Miami by using a search engine or checking a reliable weather website or app. ***

2. Accuracy not guaranteed If you think it is like a fast-food chain where you will have ready-made food with the same taste at every branch of the chain, you are wrong. That is not the case at all. ChatGPT is your assistant and provides you with useful information. However, it might require you to review its responses and make changes before using them. Despite its reliability, errors might still occur. The 26

ChatGPT website also disclaims at the bottom of the page that it may give you inaccurate answers based on the data you enter.

OpenAI's website disclaimer: “Artificial intelligence and machine learning are rapidly evolving fields of study.

We are constantly working to improve our services to make them more accurate, reliable, safe and beneficial. Given the probabilistic nature of machine learning, use of our services may in some situations result in incorrect output that does not accurately reflect real people, places, or facts. You should evaluate the accuracy of any output as appropriate for your use case, including by using human review of the output.”

(OpenAI, Terms of Use, 2023)

3. Privacy One of the main concerns raised by most users is privacy. The chatbot keeps a record of the information shared with it for improvement and training purposes.

Recently, OpenAI, the bot founder, provided the option to turn off chat history. This is to ensure conversation history is not used for training purposes. Despite this, new conversations are still retained in the records for 30 days for abuse check purposes.

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4. ADOPTION OF CHATGPT BY DIFFERENT ORGANIZATIONS IN THE WORLD The following table shows ChatGPT adoption by different organizations around the world: No. Organization Industry 1.

Coles Group Consumer staples

2.

Westpac Banking Corporation

Banking

3.

Coca-Cola

Beverages

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Description Coles group executives use the chatbot to prepare presentations for events.

The bank uses ChatGPT technology to draft business letters and policies for its customers.

Coca-Cola uses ChatGPT to enhance its top-of-the-line brands, marketing campaigns, and customer

4.

Duolingo

Online education

5.

Expedia

Information Technology – Travelling

6.

Kogan

Online retailer

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experiences.

Duolingo allows users to receive detailed feedback on their answers through ChatGPT. The company incorporated the chatbot into the mobile application so their customers can search for flights, hotels, and destinations as if they were interacting with a travel agent.

It uses ChatGPT for content related tasks and customer services.

7.

Freshworks

Information Technology – Software

8.

Microsoft Corporation

Information technology

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The chatbot is used for code writing and tutoring.

It embedded a chatbot in its search engine, Bing, to answer specific questions from users.

APPLICATION OF CHATGPT IN THE WORLD OF BUSINESS AND FINANCE

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Finance Knowledge

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5. FINANCE KNOWLEDGE ChatGPT provides answers to any precise or specific knowledge need that may arise. The world of finance has a lot of unique terminologies and concepts which can be understood by ChatGPT within seconds when an input question is given to the chatbot for it to comprehend.

As an example of how ChatGPT could be used to gather knowledge of finance topics or concepts, the following is the chatbot's response:

Q: Please tell me about the asset management industry in a paragraph.

ChatGPT: The asset management industry is a vital sector within the financial landscape that involves the professional management and investment of various types of assets, including stocks, bonds, real estate, and more. Asset managers, also known as investment managers or fund managers, provide expert guidance and services to individuals, institutions, and other entities seeking to grow and preserve their wealth. They analyze market trends, conduct research, and make informed investment decisions on behalf of their clients to achieve specific financial goals while managing risk. The industry encompasses a wide range of investment vehicles, such as mutual funds, ETFs, pension funds, and hedge funds, catering to different investor preferences and needs. Asset management plays a crucial role in mobilizing capital, driving economic growth, and offering individuals and institutions opportunities to access professional investment expertise and diversify their portfolios for long-term financial success. ***

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This is a reasonable response, and it gives anyone a basic idea of how the asset management industry works as a whole. Anyone can easily understand that the asset management industry involves the professional management and investment of various types of assets, including stocks, bonds, real estate, and more. Asset managers provide expert guidance and services to individuals, institutions, and other entities seeking to grow and preserve their wealth.

A student or young professional new to the asset management industry can use ChatGPT to answer knowledge-based and/or application-based questions.

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In the following example, knowledge-based questions:

ChatGPT

answers

Q: In a paragraph, please explain what Net Asset Value means in asset management.

ChatGPT: Net Asset Value (NAV) is a fundamental concept in asset management that represents the per-share value of a mutual fund, exchange-traded fund (ETF), or other pooled investment vehicle. It is calculated by subtracting the fund's liabilities from its total assets and dividing the result by the number of shares outstanding. NAV provides investors with an indication of the underlying value of their investment in the fund. It reflects the market value of the fund's portfolio holdings, adjusted for expenses and liabilities. Changes in NAV over time reflect the performance of the underlying investments and the impact of income, expenses, and capital gains/losses. Investors often monitor NAV to assess the value and performance of their investment, as well as to determine the purchase or redemption price of fund shares. However, it is important to note that NAV does not necessarily represent the price at which investors can buy or sell fund shares, as there may be additional fees or charges applied. ***

ChatGPT provided a precise answer. It gave a thorough introduction to NAV, showed how it could be calculated, and provided a conclusion in relation to NAV. It gave a structured response, and it was easy to understand. In addition, it responded within a short period of time, which is the best part.

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Considering the following example, I tried to check whether ChatGPT responds to questions with both knowledge and application elements as part of its answer.

Q: Please tell me how to calculate the Net Assets Value (NAV) of a mutual fund? Please explain with examples.

ChatGPT: To calculate the Net Asset Value (NAV) of a mutual fund, follow these steps: 1. Determine the total value of the fund's assets: This includes the market value of all the securities held by the fund, such as stocks, bonds, and cash equivalents. For example, let's say a mutual fund holds $10 million worth of stocks, $5 million worth of bonds, and $2 million in cash, totaling $17 million in assets.

2. Determine the total value of the fund's liabilities: This includes any outstanding debts, expenses, and fees owed by the fund. For example, let's say the fund has $500,000 in liabilities.

3. Subtract the total liabilities from the total assets: In our example, subtracting $500,000 in liabilities from the $17 million in assets gives us $16.5 million.

4. Determine the total number of shares outstanding: This refers to the total number of shares held by investors in the mutual fund. For example, let's assume there are 1 million shares outstanding.

5. Divide the net assets (total assets minus liabilities) by the number of shares outstanding: Dividing $16.5 million by 1 million shares gives us a NAV of $16.50 per share.

Therefore, the Net Asset Value (NAV) of the mutual fund in this example would be $16.50 per share.

It's important to note that NAV is typically calculated at the end of each trading day, as the value of the underlying securities and liabilities can fluctuate. Additionally, mutual funds may have different classes of shares (e.g., Class A, Class B), each with its own NAV due to varying expenses and fees. ***

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According to the above test, the chatbot provided knowledge to the user and explained how to apply that knowledge. It tells us what NAV is, how to calculate it, and gives us an example of NAV calculation. Precision, accuracy, and quality are evident in the output.

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Policies and Standard Operating Procedures (SOPs)

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6. POLICIES AND STANDARD OPERATING PROCEDURES (SOPS) A company, regardless of where it is located in the world, has some policies and procedures that govern how it runs its business. For instance, it would have policies and procedures relating to human resources (HR), employee remuneration and rewards, risk management, and workplace safety, as well as policies and procedures relating to other operational areas.

The process of setting up and writing policies and standard operating procedures can be tedious.

Executives or managers sometimes need assistance writing these documents. Most companies hire external experts to develop policies and procedures, which adds cost to their operations. An example of how ChatGPT can play a role in setting a direction for the development of policies and procedures can be seen in the following example.

I tried using the chatbot to get policies and standard operating procedures for an asset management company. I also have workplace safety and cyber security policies and procedures as well.

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The example of asset management policies and procedures in general

Q) Are you able to help me write the standard operating procedures of my asset management company?

ChatGPT: Of course! I can assist you in creating the standard operating procedures (SOPs) for your asset management company. Here is a general framework that you can follow to develop your SOPs. You can customize it based on your specific requirements and processes.

1. Title Page: Include the name of your asset management company, the title of the SOP document, the version number, and the effective date.

2. Table of Contents: Provide a clear outline of the sections and subsections of the SOP document for easy navigation.

3. Introduction: Briefly explain the purpose and scope of the SOPs. Describe the importance of adhering to the procedures outlined in the document.

4. Responsibilities and Roles: Outline the responsibilities and roles of individuals involved in asset management. Define the key personnel responsible for various tasks, such as portfolio managers, investment analysts, risk managers, compliance officers, etc.

5. Compliance and Regulatory Considerations: Specify the regulatory frameworks, laws, and standards relevant to your asset management company. Include information about compliance requirements, reporting obligations, and any specific guidelines that need to be followed.

Continued…

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6. Investment Process: Detail the steps involved in the investment process, including: - Portfolio construction: Describe how portfolios are constructed, taking into account investment objectives, risk tolerance, asset allocation, and diversification.

- Security selection: Explain the criteria and methodology used to select securities for the portfolio.

- Trade execution: Outline the process for executing trades, including the use of electronic trading platforms, order routing, and best execution practices.

- Monitoring and rebalancing: Describe how portfolios are monitored and rebalanced to maintain alignment with investment objectives.

7. Risk Management: Explain the risk management procedures followed by your company. This may include: - Risk identification: Identify various types of risks associated with asset management, such as market risk, credit risk, liquidity risk, operational risk, etc.

- Risk assessment and mitigation: Describe how risks are assessed, measured, and managed. Include details about risk mitigation strategies, risk limits, stress testing, and scenario analysis.

8. Reporting and Performance Measurement: Provide guidelines for reporting investment performance to clients, regulators, and internal stakeholders. Explain the methodology used for calculating performance metrics, such as returns, benchmarks, and attribution analysis.

9. Compliance Monitoring and Internal Controls: Describe the processes and controls in place to ensure compliance with regulations and internal policies. Include procedures for conducting compliance monitoring, internal audits, and addressing any identified issues.

10. Data Security and Confidentiality: Outline measures to protect sensitive client information and maintain data security. Specify procedures for data backup, access controls, encryption, and incident response in case of a security breach.

Continued…

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11. Record Keeping: Describe the requirements for record keeping and document retention.

Explain the types of documents that should be maintained, their storage methods, and the duration for which they should be retained.

12. Training and Development: Highlight the importance of ongoing training and professional development for employees. Provide details about the training programs available and any certifications or qualifications required for specific roles.

13. Change Management: Explain the process for reviewing and updating the SOPs. Describe the protocol for proposing and implementing changes, including documentation, review, approval, and communication to relevant stakeholders.

14. Glossary of Terms: Include a glossary of key terms and acronyms used throughout the SOP document for easy reference.

15. Appendices: Attach any relevant templates, forms, or additional resources that support the SOPs. Remember, this is a general framework, and you should tailor it to suit the specific needs and processes of your asset management company. It's essential to involve relevant stakeholders and subject matter experts in the development and review process to ensure accuracy and effectiveness. ***

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The example of workplace safety policies and procedures

Q: Could you please provide me with a sample of workplace safety

policies and procedures?

ChatGPT: Certainly! Here's an example of workplace safety policies and procedures that you can use as a starting point. Remember to customize them to fit your specific workplace and industry requirements.

1. General Safety Policy: a. Our company is committed to providing a safe and healthy work environment for all employees, visitors, and contractors. b. All employees are responsible for following safety procedures and reporting any potential hazards or incidents promptly. c. The company will provide necessary training, resources, and personal protective equipment (PPE) to ensure a safe workplace.

2. Hazard Identification and Reporting: a. Employees should regularly inspect their work areas for potential hazards and promptly report them to their supervisor or the safety officer. b. The company encourages employees to submit safety suggestions and improvement ideas to enhance overall safety.

3. Accident and Incident Reporting: a. All accidents, incidents, and near misses must be reported immediately to the supervisor or the designated safety officer. b. A thorough investigation will be conducted for each incident, and corrective actions will be implemented to prevent similar occurrences.

Continued…

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4. Emergency Procedures: a. Emergency evacuation routes and procedures will be clearly marked and communicated to all employees. b. Regular emergency drills will be conducted to ensure everyone is familiar with evacuation procedures. c. Employees should be aware of the location of emergency exits, fire extinguishers, first aid kits, and other safety equipment.

5. Personal Protective Equipment (PPE): a. PPE will be provided by the company and must be worn when and where required. b. Employees are responsible for maintaining and using their assigned PPE correctly and reporting any damages or defects to their supervisor.

6. Safe Work Practices: a. All employees must follow established safe work practices and procedures. b. Machinery, equipment, and tools should be used correctly, and any defects or malfunctions should be reported immediately. c. Employees should receive appropriate training and authorization before operating specialized equipment or machinery.

7. Hazardous Materials: a. Proper handling, storage, and disposal procedures must be followed for hazardous materials and substances. b. Employees should be trained in the safe use of chemicals and provided with Material Safety Data Sheets (MSDS) when required.

Continued...

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8. Workplace Ergonomics: a. Employees should be aware of ergonomic principles and encouraged to maintain good posture and take regular breaks. b. Workstations and equipment should be properly adjusted to minimize the risk of repetitive strain injuries or musculoskeletal disorders.

9. Safety Training and Communication: a. All employees will receive initial safety training upon joining the company, and regular refresher courses will be provided. b. Safety information, updates, and reminders will be communicated through meetings, posters, emails, and other relevant channels.

10. Compliance and Continuous Improvement: a. The company will comply with all relevant safety laws, regulations, and industry standards. b. Regular safety audits and inspections will be conducted to identify areas for improvement and ensure compliance.

Remember, this is just a sample, and you should tailor it to meet your specific workplace requirements. It's important to consult with legal and safety professionals to ensure your policies and procedures align with applicable laws and regulations in your jurisdiction.

***

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The example of cybersecurity policies and procedures from the chatbot Q: Please prepare cybersecurity policies and procedures for a company.

Sure! Here's a sample template for a cybersecurity policy and procedures document for a company. Keep in mind that this is a general outline, and you may need to customize it based on the specific needs and regulations of your organization. **Cybersecurity Policy and Procedures** 1. **Introduction** - Overview of the policy and its purpose - Statement of commitment to cybersecurity and protection of sensitive information - Scope of the policy (applicable to all employees, contractors, and third parties accessing company systems) 2. **Roles and Responsibilities** - Identification of key personnel responsible for implementing and enforcing cybersecurity measures - Roles and responsibilities of employees, management, IT staff, and other relevant stakeholders 3. **Acceptable Use of IT Resources** - Guidelines for the appropriate use of company-provided IT resources, including computers, networks, software, and data - Prohibited activities (e.g., unauthorized access, sharing of credentials, visiting malicious websites) - Guidelines for password management, including complexity requirements and regular password changes - Regular security reminders and updates on emerging threats and best practices Continued…

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4. **Data Protection** - Classification of data based on sensitivity and requirements for handling each classification level - Rules for data access, sharing, storage, and disposal - Encryption requirements for sensitive data in transit and at rest - Procedures for reporting and responding to data breaches or incidents 5. **Network Security** - Guidelines for securing company networks, including wireless networks and remote access - Requirements for the use of firewalls, intrusion detection/prevention systems, and antivirus software - Procedures for patch management and regular system updates 6. **Physical Security** - Guidelines for securing physical access to company premises, server rooms, and data centers - Requirements for visitor management, badge access control, and CCTV surveillance - Procedures for equipment inventory and disposal, including proper data wiping before disposal or recycling 7. **Incident Response** - Procedures for reporting and responding to cybersecurity incidents, including data breaches, malware infections, and unauthorized access attempts - Guidelines for internal communication during incidents and escalation procedures - Roles and responsibilities of incident response team members Continued…

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8. **Employee Awareness and Training** - Requirements for cybersecurity awareness training for all employees - Guidelines for phishing awareness and safe email practices - Regular security reminders and updates on emerging threats and best practices 9. **Third-Party Security** - Requirements for assessing the cybersecurity posture of third-party vendors and contractors - Guidelines for including cybersecurity clauses in contracts and service level agreements - Procedures for monitoring and reviewing third-party compliance 10. **Compliance and Auditing** - Guidelines for regular security audits, risk assessments, and vulnerability scans - Procedures for ensuring compliance with relevant laws, regulations, and industry standards - Consequences of non-compliance and enforcement measures 11. **Policy Review and Updates** - Schedule for reviewing and updating the cybersecurity policy and procedures - Process for incorporating feedback and improvements from stakeholders - Approval and sign-off process for policy changes Remember, this is just a starting point, and you should adapt and customize this template to fit your organization's specific needs and industry regulations. It's also important to involve key stakeholders, including IT, legal, and management teams, in the development and review of your cybersecurity policies and procedures. ***

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I observed that ChatGPT cannot provide you with 100% ready-made policies and procedures, but it can provide you with the necessary starting points and ideas to start writing policies and standard operating procedures, and it relatively makes it easier for anyone who understands her/his organization and can easily write policies based on the results generated by ChatGPT. In order to get the most out of the chatbot for setting any policy and SOP, you must first get its general response as above, then you must specifically ask questions for each sub-topic or area in the policy and SOP to gain the most out of it. Let’s see an example on the following page.

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Q: Please tell me "Overview of the policy and its purpose" for cybersecurity policy.

ChatGPT: Overview of the policy and its purpose for a cybersecurity policy: A cybersecurity policy is a comprehensive set of guidelines, rules, and procedures that an organization or government entity establishes to protect its information technology infrastructure, systems, networks, and data from unauthorized access, attacks, and other potential security threats. The purpose of a cybersecurity policy is to outline the organization's commitment to maintaining the confidentiality, integrity, and availability of its digital assets and to provide a framework for managing and mitigating cybersecurity risk. The policy typically includes a wide range of components and addresses various aspects of cybersecurity, including…

Q” Please tell me "Statement of commitment to cybersecurity and protection of sensitive information" for cybersecurity policy.

ChatGPT: Statement of commitment to cybersecurity and protection of sensitive information: At [Organization Name], we are dedicated to maintaining a robust and secure cybersecurity posture to protect our valuable digital assets and the sensitive information entrusted to us. We recognize the critical importance of safeguarding data integrity, confidentiality, and availability against everevolving cyber threats. This commitment extends to all our employees, contractors, partners, and stakeholders who interact with our systems and networks.

We pledge to adhere to industry best practices, legal and regulatory requirements, and internal policies to ensure the highest level of cybersecurity across our organization. We recognize that cybersecurity is not a one-time effort but an ongoing and proactive endeavor that demands constant vigilance and continuous improvement.

Our commitment to cybersecurity encompasses the following key principles… ***

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The chatbot can easily respond to specific areas within a policy and SOP for a topic by using questions to gather more information. Ideally you should have a table of contents for a policy or SOP and ask the bot specific questions relating to relevant areas. To modify the contents of the policy, you can use different words and materials according to your organization's needs.

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Market Updates

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7. MARKET UPDATES It can be time-consuming to get market updates regularly. There are many search engines online. All of them offer a variety of options and deciding which one is suitable requires a lot of time and investigating the available resources.

When I asked ChatGPT for the latest update on the asset management industry in the world, it informed me that it could provide information up to 2021. Please see an example on the next page.

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Q: Please tell me current market updates of the asset management industry in the world?

As an AI language model, I don't have real-time data or access to current market updates beyond my September 2021 knowledge cutoff. However, I can provide you with some general information about the asset management industry as of that time.

Prior to September 2021, the asset management industry was experiencing several key trends and challenges: 1. Growth in assets under management (AUM): The industry was experiencing steady growth in AUM, driven by factors such as global economic expansion, increased savings, and rising investment in emerging markets.

2. Rise of passive investing: Passive investment strategies, such as index funds and exchange-traded funds (ETFs), continued to gain popularity. These strategies aim to replicate the performance of a specific market index rather than actively picking individual securities.

3. Environmental, Social, and Governance (ESG) investing: Investors were increasingly focused on ESG factors, integrating sustainability considerations into their investment decisions. This trend led to the growth of ESG-focused funds and the incorporation of ESG criteria by asset managers.

4. Technological advancements: Asset management firms were leveraging technology and data analytics to improve investment processes, enhance risk management, and provide more personalized client services. Artificial intelligence and machine learning were being used to gain insights from large data sets.

5. Regulatory landscape: Asset managers faced evolving regulatory requirements, including increased scrutiny on fees, transparency, and reporting standards. Regulations such as MiFID II in Europe and the Department of Labor's fiduciary rule in the United States had an impact on the industry.

Please note that the current market updates beyond September 2021 may include significant changes and developments that I am unaware of. It's always a good idea to consult up-to-date and reliable sources or financial experts for the most recent information on the asset management industry. ***

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Example of current market share price of the top 10 companies operating in Singapore

Q: Please tell me the market share price of the top 10 companies in Singapore.

ChatGPT: I'm sorry, but as an AI language model, I don't have real-time data or the ability to browse the internet. My knowledge was last updated in September 2021, and I don't have access to current market information or stock prices. It would be best to consult a reliable financial website or contact a financial advisor for the most up-to-date information on the market share prices of companies in Singapore. ***

One of the biggest limitations of ChatGPT is that it cannot provide real-time information on a topic, such as live updates or real-time comments. It has a database of information up to a certain time. However, some of the above information can, in fact, be of invaluable use to researchers, students, the government, and other stakeholders in an industry seeking past-oriented information for a variety of purposes, including forecasting, or making decisions based on past trends.

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Risk Management

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8. RISK MANAGEMENT Risk management is crucial to today's business.

Every day, thousands of activities happen worldwide.

The reality is that while these activities create opportunities, there are also risks associated with them at the same time. Thus, it is essential for all organizations to ensure that they take appropriate steps to ensure that they can manage current and arising risks in a proper manner. All organizations must establish and maintain a risk management function as a key part of their organization.

The book is written considering the financial world environment. The following are key risks faced by any organization operating in the finance world or having connections with it. The following are different types of risk: -

Credit risk; Market risk; Liquidity risk; Investment risk; Business risk; and Others.

Every business has its own way of managing these risks.

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I tried using ChatGPT to understand the meaning of these risks, examples and how to manage them.

Credit risk Credit risk occurs when a lender lends money to a borrower who may not repay it.

Borrowers receive loans based on their ability to repay future obligations.

As a lender, it is imperative to understand a borrower's financial health. It is also crucial to quantify the risk that a borrower will trigger a default in the future.

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Let’s see what the chatbot tells us about credit risk in general:

Q: What is credit risk?

ChatGPT: Credit risk refers to the potential loss that lenders or investors face when borrowers or debtors fail to repay their loans or fulfill their financial obligations. It is the risk associated with the possibility of default or nonpayment by the borrower. When extending credit, lenders take on the risk that the borrower may not repay the borrowed amount or may make late payments.

Credit risk can arise in various lending scenarios, including bank loans, mortgages, credit cards, trade credit, and other forms of lending. It applies to both individuals and businesses that provide credit or invest in debt instruments.

Lenders assess credit risk by evaluating the creditworthiness of borrowers.

This involves analyzing factors such as the borrower's financial stability, income level, repayment history, existing debt, industry conditions, economic factors, and market conditions. Based on this assessment, lenders determine the probability of default and establish appropriate interest rates, loan terms, and credit limits.

The severity of credit risk varies across different borrowers. Some borrowers may have a high credit risk due to poor credit history, financial instability, or a high debt-to-income ratio. Others may have a low credit risk if they have a strong credit profile, stable income, and a history of timely payments. ***

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In a nutshell, it tells us that when a borrower fails to repay their loans or meet their financial obligations, lenders or investors may suffer an economic loss. It includes bank loans, mortgages, credit cards, and trade credit for individuals and businesses. Credit risk assessment is based on factors such as the borrower's financial stability, income level, repayment history, existing debt, and industry conditions. By evaluating the likelihood of default, lenders can set appropriate interest rates, loan terms, and credit limits. Credit risk varies among borrowers, with some posing high risk due to poor credit histories or monetary instability. Others pose lower risk with strong credit profiles and timely payment records.

There is no doubt that this is a reasonable and helpful response for anyone interested in learning more about credit risk in general.

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As a further test, I asked the chatbot to provide examples of credit risk in the marketplace and what could be done to manage it.

Q: What are examples of credit risk?

ChatGPT: Here are some examples of credit risk: 1. Default on Loans: When borrowers fail to make scheduled loan payments or completely default on their loans, it represents a significant credit risk. This can occur in various types of loans, including personal loans, mortgages, business loans, or credit card debt.

2. Late Payments: Borrowers who consistently make late payments or irregular payments pose a credit risk. Late payments can indicate financial difficulties or a lack of commitment to honoring their obligations.

3. Credit Card Defaults: Credit card issuers face credit risk when cardholders do not make the minimum required payments or exceed their credit limits, resulting in delinquency or default.

4. Counterparty Risk: In financial transactions, counterparties may fail to fulfill their contractual obligations, such as failing to settle trades, repay loans, or honor derivative contracts. This poses credit risk to the parties involved.

5. Bankruptcy: When individuals or businesses declare bankruptcy, it indicates a high credit risk as they may be unable to repay their debts in full or at all. Creditors may face significant losses in such cases.

6. Downgrades in Credit Ratings: Credit rating agencies assign credit ratings to borrowers based on their creditworthiness. A downgrade in credit ratings indicates a deterioration in credit quality, increasing credit risk for lenders or investors holding debt securities issued by the downgraded entities.

Continued…

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7. Country or Sovereign Risk: When lending or investing in international markets, there is the risk that a country or sovereign entity may default on its debt obligations. Economic instability, political upheavals, or adverse events can increase the credit risk associated with such investments.

8. Industry-specific Risks: Certain industries may have inherent credit risks due to their volatile nature or susceptibility to economic downturns. For example, sectors such as energy, construction, or retail may face higher credit risk during periods of economic uncertainty.

9. Concentration Risk: If lenders or investors have a significant portion of their credit exposure concentrated in a single borrower, industry, or geographic region, any adverse developments in that area can significantly impact credit risk.

10. Counterparty Failure in Derivatives Transactions: Credit risk exists in derivative transactions when one party fails to fulfill its obligations, leading to potential losses for the other party.

These are just a few examples of credit risk. Credit risk can vary in severity and impact depending on the specific circumstances, borrowers, and economic conditions. Lenders and investors employ various risk management techniques to mitigate these risks and protect themselves against potential losses. ***

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In addition to sharing different types of credit risk, the chatbot also briefly explained what each is. It is an excellent response and reliable.

The following is the chatbot's response to how to manage credit risk in general:

Q What is the best way to manage credit risk?

ChatGPT:

Managing credit risk involves employing various strategies and practices to mitigate the potential losses associated with default or non-payment. Here are some key approaches to effectively manage credit risk: 1. Thorough Credit Assessment: Conduct a comprehensive evaluation of borrowers' creditworthiness before extending credit. This includes analyzing their financial stability, repayment history, income level, existing debt, and industry conditions. A rigorous credit assessment helps identify potential risks and enables appropriate risk pricing and loan structuring.

2. Diversification: Spread credit exposure across a diverse portfolio of borrowers or investments. By not relying heavily on a single borrower or industry, the impact of defaults or adverse events on the overall portfolio is minimized. Diversification helps mitigate concentration risk.

3. Risk-Based Pricing: Adjust interest rates, fees, and loan terms based on the borrower's credit risk. Higher-risk borrowers should be charged higher interest rates and fees to compensate for the increased likelihood of default.

Risk-based pricing aligns the cost of credit with the associated credit risk.

4. Collateral and Security: Whenever possible, secure loans with collateral or assets that can be liquidated in case of default. Collateral provides an additional layer of protection and reduces potential losses for the lender.

5. Credit Monitoring and Surveillance: Continuously monitor borrowers' financial performance, repayment behavior, and market conditions. Regularly review their financial statements, credit reports, and conduct periodic credit reviews. This helps identify early warning signs of potential default and allows for timely interventions.

Continued…

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6. Credit Risk Policies and Limits: Establish comprehensive credit risk policies and guidelines to guide lending decisions. Clearly define risk appetite, credit limits, concentration limits, and acceptable levels of credit risk exposure.

Adherence to these policies ensures consistency in credit risk management practices.

7. Stress Testing: Conduct stress tests to assess the resilience of the credit portfolio under adverse scenarios. Simulating economic downturns or changes in market conditions helps identify vulnerabilities and evaluate the impact on credit risk exposure. This enables proactive risk management and contingency planning.

8. Credit Risk Mitigation Instruments: Utilize credit risk mitigation instruments such as credit insurance, credit derivatives, or hedging strategies to transfer or hedge credit risk. These instruments can provide additional protection against potential losses and enhance risk management capabilities.

9. Ongoing Relationship Management: Foster strong relationships with borrowers and maintain open communication channels. Regularly engage with borrowers to understand their evolving financial situation, address concerns, and offer support when necessary. Proactive relationship management can help mitigate credit risk by identifying potential issues early on.

10. Skilled Credit Risk Professionals: Employ skilled credit risk professionals who possess expertise in assessing, monitoring, and managing credit risk. A team with robust credit risk knowledge and experience can make informed decisions, identify emerging risks, and implement effective risk mitigation strategies.

It's important to note that credit risk cannot be completely eliminated, as it is an inherent part of lending and investing. Effective credit risk management involves a combination of these practices, tailored to the specific business, industry, and risk appetite of the lender or investor. Regular monitoring and adjustments to credit risk management strategies are essential to ensure ongoing effectiveness in a dynamic business environment. ***

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The chatbot tells us about different ways to manage credit risk like using a credit assessment approach, investment diversification, risk-based pricing models, collaterals, credit monitoring and surveillance, setting credit risk limits, stress testing, using derivatives or credit insurance, managing relationships with borrowers, and hiring credit risk experts or professionals to assist with overall risk management.

Even someone who does not belong to the finance industry will understand what the chatbot is saying as it is written in plain vanilla English. This is a simple snack that anyone can enjoy.

The chatbot provided very helpful suggestions and is a very useful assistant available 24/7 to assist you anywhere and anytime. I believe OpenAI should incorporate a “live data-capture system” into its bot. The information can be further adapted to meet your needs.

Overall, the bot met my expectations.

As an additional check, I checked if the bot could also provide results for other types of risk besides credit risk. Just like hot fried chicken at any fast-food restaurant, the bot processed the information and gave it to me just as if it had been cooked fresh for me.

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The following example is part of the research intended to illustrate the chatbot's ability and how you can use it in educational or professional life: Market risk Q: Could you please explain briefly what market risk is?

ChatGPT: Certainly! Market risk refers to the potential for financial losses that arise from changes in market conditions. It is the risk of adverse movements in prices, interest rates, exchange rates, or other market factors that can negatively impact the value of investments or portfolios. Market risk affects a wide range of financial instruments, including stocks, bonds, commodities, currencies, and derivatives.

Market risk arises due to various factors such as economic conditions, geopolitical events, supply and demand dynamics, investor sentiment, and changes in market expectations. These factors can lead to fluctuations in asset prices and market conditions, which can result in gains or losses for investors.

There are different types of market risk, including price risk, interest rate risk, foreign exchange risk, commodity price risk, and liquidity risk. Price risk refers to the potential for losses due to changes in the prices of financial instruments. Interest rate risk pertains to the risk of losses resulting from changes in interest rates. Foreign exchange risk arises from fluctuations in exchange rates, while commodity price risk relates to potential losses resulting from changes in commodity prices. Liquidity risk refers to the risk of not being able to buy or sell assets at desired quantities or prices due to inadequate market liquidity.

Managing market risk involves employing various strategies such as diversification, hedging, risk measurement and monitoring, stress testing, and active portfolio management. The goal is to mitigate the impact of adverse market movements and protect against significant losses. However, it's important to note that market risk cannot be entirely eliminated, as it is an inherent part of investing. Investors and institutions need to understand and manage market risk as they make investment decisions and manage portfolios. ***

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Q: Please give me some examples of market risk.

ChatGPT: Here are some examples of market risk: 1. Price Risk: This type of market risk refers to the potential for losses due to changes in the prices of financial instruments. For example: - A stock investor faces the risk of declining stock prices, which can result from factors such as poor company performance, negative news, or overall market downturns.

- Bondholders may experience price risk if interest rates rise, as bond prices tend to move inversely to interest rates.

2. Interest Rate Risk: Interest rate risk is the risk of losses resulting from changes in interest rates. For instance: - If an individual holds fixed-rate bonds and interest rates increase, the value of their bonds may decline in the secondary market.

- A bank that offers fixed-rate loans faces interest rate risk if market rates rise, as the interest income earned from loans may no longer align with its funding costs.

3. Foreign Exchange Risk: Foreign exchange risk arises from fluctuations in exchange rates. Examples include: - Importers or exporters face foreign exchange risk when the value of the currency they transact in changes, potentially affecting the cost of goods or profitability.

- Investors who hold international investments face currency risk if the value of the foreign currency declines relative to their home currency.

Continued…

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4. Commodity Price Risk: Commodity price risk relates to potential losses resulting from changes in commodity prices. For instance: - Energy companies face commodity price risk if the price of oil or natural gas decreases, impacting their revenue and profitability.

- Agricultural producers face commodity price risk if the price of crops such as wheat or corn declines, affecting their income.

5. Liquidity Risk: Liquidity risk refers to the risk of not being able to buy or sell assets at desired quantities or prices due to inadequate market liquidity.

Examples include: - An investor holding a thinly traded stock may struggle to sell their shares quickly at a favorable price.

- Bondholders may face liquidity risk if they need to sell their bonds during a market disruption when there is limited demand.

These are just a few examples of market risk. Each type of risk can have specific implications for different individuals, businesses, and financial instruments. Managing market risk involves understanding the specific risks relevant to one's investments, employing appropriate risk management strategies, and regularly monitoring market conditions. ***

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Q: Please tell me strategies to manage market risk.

ChatGPT: There are several strategies to manage market risk effectively. Here are some commonly employed strategies: 1. Diversification: Diversification involves spreading investments across different asset classes, sectors, regions, and currencies. By diversifying, you reduce the risk of being overly exposed to a single investment or market. If one investment performs poorly, others may perform well, helping to mitigate overall losses.

2. Hedging: Hedging is a strategy used to offset potential losses by taking positions that will counterbalance adverse movements in the market.

Hedging techniques include using derivatives such as options, futures contracts, or swaps. For example, an investor can use put options to protect against declining stock prices or take a currency forward contract to hedge against foreign exchange risk.

3. Risk Measurement and Monitoring: Implement risk measurement models and tools to assess the potential impact of market risk on investment portfolios. Regularly monitor market conditions, economic indicators, and relevant news to stay informed about emerging risks. This helps in making timely adjustments to the investment strategy.

4. Stop-Loss Orders: Implementing stop-loss orders can be a useful risk management technique. A stop-loss order sets a predetermined price at which a security is automatically sold to limit potential losses. It helps protect against further declines in the market and allows for disciplined risk management.

5. Stress Testing: Conduct stress tests to evaluate the resilience of investment portfolios under adverse market scenarios. By simulating extreme market conditions, stress testing provides insights into the potential impact on portfolio value and performance. This helps identify vulnerabilities and adjust investment strategies accordingly.

Continued…

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6. Active Portfolio Management: Actively manage your investment portfolio by continuously monitoring and analyzing market conditions, adjusting allocations, and making informed investment decisions. Active managers aim to take advantage of market opportunities, rebalance portfolios, and manage risk more effectively.

7. Risk Education and Expertise: Develop a strong understanding of market risk and stay informed about market trends, economic indicators, and geopolitical events. Continuously educate yourself about different risk management techniques and seek the guidance of experts or financial advisors when needed.

8. Regular Portfolio Review: Conduct periodic portfolio reviews to assess the performance, risk exposure, and alignment with investment objectives.

Identify and address any imbalances or excessive risks in the portfolio.

Regular reviews help ensure that the investment strategy remains aligned with changing market conditions and risk tolerance.

Remember that no strategy can completely eliminate market risk, as it is an inherent part of investing. The key is to find a balance between risk and reward that aligns with your financial goals and risk tolerance. It's important to customize risk management strategies based on individual circumstances and seek professional advice as necessary. ***

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A remarkable thing about the bot is that it can give very precise and accurate information that can be used as a starting point for any activity, for example, establishing a risk management strategy for an organization. This is an ideal place to begin for any organization, as well as an individual, who wants a few basic ideas or a starting point on the topic. Once you begin, you can modify and/or add to the information as you progress.

It is imperative to remember that search engines find all information based on the keywords entered.

They will never give you precise and point-to-point information about any query you enter.

Additionally, I tested the chatbot to see if it could provide application-based responses.

ChatGPT can also serve as a valuable tool for risk registers. It provides the content, but also a tabular form template that is easy to use and can be imported into any spreadsheet. I have included an example of a risk register as part of my research on the following page.

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Q: Please create a sample risk register for an insurance company.

ChatGPT Response: Certainly! Here’s a sample risk register for an insurance company: Risk Register for XYZ Insurance Company

Risk ID

Risk Description

R00 1

Catastrophi c event (e.g., natural disasters, large-scale accidents) resulting in a high volume of claims and significant financial losses.

R00 2

Regulatory changes (e.g., new laws, regulations, or compliance requiremen ts) affecting insurance products, underwritin g practices, or pricing models.

Risk Category

Operationa l Risk

Complianc e Risk

Impact

High

Mediu m

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Likelihoo d

Mediu m

High

Risk Owner

Risk Response Strategy

Claims Departmen t

Develop and regularly update a comprehensi ve disaster recovery plan.

Maintain adequate reinsurance coverage to mitigate financial impact.

Complianc e Departmen t

Establish a robust regulatory monitoring program.

Allocate resources to adapt to regulatory changes promptly.

R00 3

Investment market downturn leading to a decrease in the value of investment portfolios and investment income.

Market Risk

High

Mediu m

Investment Departmen t

R00 4

Cybersecuri ty breach resulting in unauthorize d access, data theft, or disruption of business operations.

Informatio n Security Risk

High

High

IT Departmen t

R00 5

Inadequate underwritin g leading to an increase in claims frequency or severity, negatively impacting profitability.

Underwriti ng Risk

High

Low

Underwriti ng Departmen t

R00 6

Economic recession resulting in reduced demand for insurance products and increased policy cancellation s.

Market Risk

Mediu m

Mediu m

Sales and Marketing Departmen t

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Maintain a diversified investment portfolio.

Regularly monitor market conditions and adjust investment strategies accordingly.

Implement robust cybersecurity measures, including firewalls, encryption, employee training, and regular security audits.

Strengthen underwriting practices through thorough risk assessment, policy review, and continuous training of underwriters.

Diversify product offerings, closely monitor market trends, and implement effective customer retention strategies.

R00 7

Talent retention and succession planning issues leading to a loss of key personnel with critical skills and knowledge.

Human Resources Risk

Mediu m

Low

HR Departmen t

Implement competitive compensatio n packages, provide professional development opportunitie s, and establish a succession planning program.

Note: This is just a sample risk register, and the risks and strategies mentioned may not be exhaustive or specific to a particular insurance company. Each company should tailor its risk register to its unique risks, circumstances, and risk management priorities. It is recommended to involve key stakeholders in the risk identification and management process and regularly review and update the risk register as the business environment evolves. ***

I feel fortunate that I am part of the century where I experienced such a sexy and seductive chatbot. If anyone is a newbie to risk management and their team leader gives them a task to create risk registers for the first time, the chatbot is their magic wand.

To me, the table header, which includes the risk ID, risk description, risk category, impact likelihood, risk owner and risk response strategy, makes sense. This is 74

just like an iPhone SE, where you have all the basic options to fulfill your daily needs.

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Financial Analysis

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9. FINANCIAL ANALYSIS Financial ratios are derived from financial statements to determine company performance.

Numbers on a company's financial statements, such as its balance sheet, income statement, and cash flow statement, are used to assess liquidity, leverage, growth, margins, profitability, and rate of return.

A financial ratio is a key indicator to measure a company's performance, and this information is important to different stakeholders in an industry, including investors, governments, tax authorities, fraud investigators, auditors, researchers, etc., as a way to make sense of a company's performance.

Below are some examples of financial ratios: a)

Gross profit margin;

b)

Net profit margin;

c)

Current ratio;

d)

Earnings per share; and

e)

Others.

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Analyzing financial numbers is time-consuming.

This is because you need to gather a lot of information to prepare a thorough analysis. When you have more information at your disposal, you can analyze it better.

In fact, the bot may be a lifesaver for people who dislike financial analysis and consider it a bitchy thing to do.

A well-made financial analysis gives you a depth of understanding of what caused the numbers to move up or down. It also gives you the factors that caused the movement.

ChatGPT can calculate different financial ratios. The following is one of the examples where I tried to do financial analysis using the chatbot.

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Q Can you please do financial analysis on the following table: € million

€ million

€ million

2022

2021

2020

Turnover

60,073

52,444

50,724

Operating profit

10,755

8,702

8,303

Which includes gain on disposal of ekaterra

2,303

–

–

Net finance costs

(493)

(354)

(505)

Pensions and similar obligations

44

(10)

(9)

Finance income

281

147

232

Finance costs

(818)

(491)

(728)

(157)

(74)

20

208

191

175

24

91

3

Profit before taxation

10,337

8,556

7,996

Taxation

(2,068)

(1,935)

(1,923)

Net profit

8,269

6,621

6,073

627

572

492

7,642

6,049

5,581

Basic earnings per share (€)

3.00

2.33

2.13

Diluted earnings per share (€)

2.99

2.32

2.12

Net monetary gain/(loss) arising from hyperinflationary economies Share of net profit/(loss) of joint ventures and associates Other income/(loss) from non-current investments and associates

Attributable to: Non-controlling interests Shareholders’ equity Combined earnings per share

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ChatGPT: Certainly! Let's perform a financial analysis on the provided table. We'll calculate some key financial ratios and analyze the trend in turnover, operating profit, net profit, and earnings per share for the three years (2020, 2021, and 2022). **Financial Ratios:** 1. **Gross Profit Margin:** Gross Profit Margin is calculated as (Operating Profit / Turnover) * 100.

2. **Net Profit Margin:** Net Profit Margin is calculated as (Net Profit / Turnover) * 100.

3. **Return on Equity (ROE):** ROE measures the profitability of shareholder's equity and is calculated as (Net Profit / Shareholders' Equity) * 100. **Data Analysis:** Let's calculate the financial ratios and analyze the data: | Year

|

2022

| 2021

| 2020

|

|--------------------|--------------|---------------|---------------| | Turnover

| 60,073

| 52,444

| 50,724

|

| Operating profit

| 10,755

| 8,702

| 8,303

|

| Net profit

| 8,269

| 6,621

| 6,073

Continued…

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|

**Financial Ratios:** 1. Gross Profit Margin (in %): For 2022: (10,755 / 60,073) * 100 ≈ 17.91% For 2021: (8,702 / 52,444) * 100 ≈ 16.57% For 2020: (8,303 / 50,724) * 100 ≈ 16.39% 2. Net Profit Margin (in %): For 2022: (8,269 / 60,073) * 100 ≈ 13.76% For 2021: (6,621 / 52,444) * 100 ≈ 12.63% For 2020: (6,073 / 50,724) * 100 ≈ 11.97% 3. Return on Equity (ROE) (in %): For 2022: (8,269 / 7,642) * 100 ≈ 108.14% For 2021: (6,621 / 6,049) * 100 ≈ 109.61% For 2020: (6,073 / 5,581) * 100 ≈ 108.66% Continued…

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Earnings Per Share (EPS): Year

2022

2021

2020

Basic EPS (€)

3.00

2.33

2.13

Diluted EPS (€)

2.99

2.32

2.12

Earnings Per Share (EPS): Both basic and diluted earnings per share increased over the three years, indicating an improvement in profitability on a pershare basis.

This analysis provides an overview of key financial ratios and trends in turnover, operating profit, net profit, and earnings per share for the years 2020, 2021, and 2022. For a comprehensive analysis, it is essential to consider additional financial metrics, compare the results to industry benchmarks, and evaluate any qualitative factors that may have influenced the company's performance during these years. ***

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In the example above, I downloaded Unilever's financial statements for the year ended 31 December 2022 in Excel format from its website. I pasted the Excel table along with my question into the chatbot's question box. It picked up the relevant numbers from the table and performed financial analysis by calculating different ratios such as gross profit margin. It also calculated other things in the table. During my research I was interested in two things. Firstly, I wanted to know if it could perform ratio analysis without asking for formulas. I also wanted to know if the numbers it picked were correct or not. Both of my tests were passed with flying colors.

In the era of big data, it is an absolute boon that you can also use chatbots to prepare tables, select key information or summarize “big data”.

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Business Analysis

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10. BUSINESS ANALYSIS Business analysis is a way to improve processes and operations of a business. It can identify issues and make the necessary changes to achieve defined goals.

Organizations use different models, numerical data and information to conduct business analyses to make informed decisions.

ChatGPT can be used for a variety of business analyses, including Porter’s Five Forces, SWOT analysis, PESTEL analysis, and other types of business analysis.

The following example demonstrates how I applied Porter’s five forces to Intel Corporation using ChatGPT.

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Porter’s five forces There are five forces that determine an industry's economic value. These forces can be used to determine how value is distributed among industry participants.

The Porter Five Forces model is one way to learn more about how these forces operate in an industry, and how they are based on business models. The following are five elements of the model:

Threat of

Threat of substitute

new

products and

entrants

services

Rivalry Bargaining power

among

of suppliers

existing competitors

Bargaining power of buyers

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Porter’s Five Forces application example

Q) Please apply porter’s five forces model on Intel Corporation.

ChatGPT: The Porter's Five Forces model is a strategic framework that helps analyze the competitive forces within an industry. Let's apply this model to Intel Corporation: 1. Threat of New Entrants: Intel Corporation operates in the semiconductor industry, which has high barriers to entry due to significant capital requirements, technological expertise, and economies of scale. The company has established a strong presence and enjoys a substantial market share. However, the threat of new entrants still exists, particularly from companies with advanced technologies and financial resources. Additionally, potential disruptors in the form of alternative computing technologies may pose a threat to Intel's dominance.

2. Bargaining Power of Suppliers: Intel sources raw materials and components from various suppliers, including semiconductor fabrication plants, equipment manufacturers, and other technology suppliers. While Intel has strong relationships with its suppliers and long-term contracts in place, the company is susceptible to fluctuations in the availability and pricing of key inputs. The bargaining power of suppliers is generally moderate, as Intel has the financial strength to negotiate favorable terms and maintain multiple supplier relationships.

3. Bargaining Power of Customers: Intel's customers include original equipment manufacturers (OEMs), computer manufacturers, and cloud service providers. These customers have significant bargaining power due to their size and the availability of alternative suppliers, including competitors such as AMD and NVIDIA. Customer demands for improved performance, lower prices, and customized solutions can impact Intel's pricing and profitability. However, Intel's strong brand reputation, technological leadership, and extensive product portfolio provide some leverage in negotiations.

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4. Threat of Substitutes: The threat of substitutes is a significant force in the semiconductor industry.

As technology advances, alternative computing solutions such as cloud computing, mobile devices, and specialized processors may replace traditional desktop and laptop computers. Intel is aware of this threat and has been diversifying its product portfolio to include offerings in emerging technologies like artificial intelligence, autonomous vehicles, and data centers to mitigate the impact of substitution.

5. Competitive Rivalry: The semiconductor industry is highly competitive, and Intel faces intense competition from companies like AMD, NVIDIA, Samsung, and TSMC. Intel's competitors are continually investing in research and development to develop advanced processors and technologies. Price competition, product differentiation, and technological advancements are common strategies in this industry. Intel's dominant market share and brand recognition give it a competitive advantage, but it must continue to innovate to stay ahead of rivals.

Overall, Intel Corporation operates in a dynamic and competitive industry.

While it faces challenges from potential new entrants, supplier dynamics, customer bargaining power, substitute technologies, and intense rivalry, Intel's strong market position, technological expertise, and strategic investments provide it with a foundation to navigate and succeed in this competitive landscape.

***

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The chatbot begins with a brief description of Porter's Five Forces model. Following that, Porter's five forces were discussed in terms of Intel Corporation.

Based on the chatbot's response, I identified the key points and presented them in tabular form.

Definitely a sensible answer from the chatbot.

Furthermore, I did not give the chatbot any Intel Corporation data. This information was retrieved from the bot's database. This is a similar approach to Pick and Go. No.

Forces

Level of threat

1.

Threat of New Entrants

Low

2.

Bargaining Power of Suppliers

Moderate

3.

Bargaining Power of Customers

High/Significant

4.

Threat of Substitutes

High/Significant 89

Reason Significant capital requirements, technological expertise, and economies of scale Strong relationships with suppliers and long-term contracts Size and the availability of alternative suppliers Technology advances,

5.

Competitive Rivalry

High

90

alternative computing solutions Price competition, product differentiation, and technological advancements

SWOT SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is a model of business analysis and is generally applied to evaluate a company's competitive position and formulate a strategic development plan for the future. It considers a variety of factors within and outside an organization, as well as current and future opportunities.

The following example demonstrates the testing I performed using the chatbot::

Q) Please apply SWOT Analysis model on PwC. ChatGPT Certainly! Here's a SWOT analysis for PricewaterhouseCoopers (PwC): Strengths: 1. Global Presence: PwC operates in over 155 countries and has a strong global network of firms, which enables it to serve clients worldwide and provide localized expertise.

2. Brand Reputation: PwC is recognized as one of the leading professional services firms globally, known for its expertise in audit and assurance, tax advisory, consulting, and other professional services.

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3. Industry Knowledge: PwC possesses deep industry knowledge across various sectors, allowing it to provide tailored solutions and insights to clients based on their specific needs.

4. Client Base: PwC serves a diverse range of clients, including multinational corporations, government organizations, and small to medium-sized enterprises, providing a stable and diverse revenue stream.

5. Talent Pool: PwC attracts top talent and invests in their development, fostering a skilled workforce capable of delivering high-quality services to clients.

Weaknesses: 1. Dependency on Client Demand: PwC's revenue is dependent on client demand for professional services, which can be influenced by economic cycles, industry trends, and regulatory changes. A downturn in demand could impact the firm's financial performance.

2. Public Scrutiny: As one of the "Big Four" accounting firms, PwC is subject to increased scrutiny from regulators, the public, and media, which can negatively impact its reputation if there are any controversies or failures in delivering services.

3. Risk of Lawsuits: PwC operates in a litigious environment, and any errors, omissions, or perceived failures in its services could lead to legal challenges and damage the firm's reputation.

Opportunities: 1. Digital Transformation: PwC can leverage technology and data analytics to enhance its service offerings, provide innovative solutions, and improve efficiency in areas such as auditing, cybersecurity, and consulting.

2. Emerging Markets: Expansion into emerging markets presents growth opportunities for PwC, as these markets often require professional services to support their economic development and business growth.

3. Sustainable Business Practices: The growing demand for sustainability and ESG (environmental, social, and governance) reporting creates opportunities for PwC to provide advisory services to clients looking to align with sustainable practices and comply with regulations .

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Threats: 1. Competition: PwC faces intense competition from other major professional services firms, including Deloitte, EY, and KPMG. This competition can lead to pricing pressures and challenges in winning and retaining clients.

2. Regulatory Changes: Changes in regulations and accounting standards can significantly impact PwC's operations and increase compliance costs.

Adapting to new regulatory environments and maintaining compliance is crucial.

3. Technological Disruption: Advancements in technology, such as automation and artificial intelligence, could disrupt traditional professional services and reduce the demand for certain services offered by PwC. 4. Geopolitical and Economic Uncertainties: PwC operates globally, and geopolitical tensions, trade disputes, economic downturns, and other macroeconomic factors can impact client spending, business confidence, and overall demand for professional services.

It's important to note that the SWOT analysis is a snapshot of the current situation and should be regularly reviewed and updated as the business environment evolves. ***

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The chatbot is a miracle! I deliberately entered "PwC" as an abbreviation rather than typing the full organization name. In response, it gave the full name and performed analysis.

I quickly spotted the following from the chatbot's response: • Global presense • Brand reputation • Industry knowledge • Strong client base • Talent pool

• Dependency of client demand • Public scrutiny • Risk of lawsuits

Strengths

Weakness

Opportunities

Threats • Competition • Regulatory changes • Technological disruption • Geopolitical and economic uncertainties

• Digital transformation • Emerging markets • Sustainable business practices

The chatbot's point-to-point response, presentation and speed remind me of Jason Statham's words: "If you're going to do something, do it with style!"

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Presentations

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11. PRESENTATIONS ChatGPT can generate content for presentation software such as Microsoft PowerPoint or Google Slides, etc.

The following is an example:

Please prepare presentation on Google Inc performance in 2021.

[Slide 1: Title Slide] Performance Overview of Google Inc in 2021 [Slide 2: Introduction] - Briefly introduce Google Inc as a leading technology company known for its search engine, advertising, and other digital products and services.

- Highlight the significance of analyzing its performance in 2021.

[Slide 3: Financial Performance] - Present key financial highlights for Google Inc in 2021: - Total Revenue: Provide the total revenue figure for the year and highlight any notable growth compared to the previous year.

- Revenue Breakdown: Showcase the revenue contribution from different segments, such as advertising, cloud services, hardware, and others.

- Profitability: Present key profitability metrics like operating income and net income, emphasizing any significant changes or achievements.

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[Slide 4: Market Position] - Discuss Google Inc's market position and competition in 2021: - Market Share: Highlight Google's market share in the search engine and digital advertising industries.

- Competitors: Identify major competitors and their market positions.

- Market Trends: Mention any significant trends or shifts in the industry that impacted Google's market position.

[Slide 5: Product and Service Innovations] - Showcase notable product and service innovations introduced by Google Inc in 2021: - New Product Launches: Highlight key product launches or major updates, such as Google Workspace, Google Cloud offerings, and updates to search algorithms.

- Strategic Acquisitions: Mention any significant acquisitions that expanded Google's product portfolio or enhanced its capabilities.

- Partnerships: Highlight notable partnerships or collaborations that contributed to Google's product and service offerings.

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[Slide 6: User Metrics] - Present key user metrics to showcase Google Inc's reach and engagement in 2021: - Active Users: Highlight the number of active users for Google's core products, such as search, Gmail, YouTube, and Android.

- User Growth: Share any notable user growth figures or trends compared to the previous year.

- Engagement Metrics: Showcase metrics like time spent on Google platforms, average searches per user, and user feedback or satisfaction ratings.

[Slide 7: Sustainability and Corporate Social Responsibility] - Discuss Google Inc's efforts and achievements in the areas of sustainability and corporate social responsibility (CSR) in 2021: - Environmental Initiatives: Highlight Google's environmental sustainability goals, renewable energy commitments, and efforts to reduce carbon footprint.

- Diversity and Inclusion: Showcase Google's initiatives to foster diversity and inclusion within the company and in the tech industry.

- Philanthropy and Social Impact: Mention Google's philanthropic activities, community engagement programs, and social impact initiatives.

[Slide 8: Conclusion] - Summarize the key points discussed in the presentation.

- Highlight Google Inc's overall performance in 2021 and its position for future growth.

- Conclude with a positive note about the company's continued innovation, market leadership, and commitment to sustainability and social responsibility.

[Slide 9: Q&A] - Allocate a slide for questions and answers to address any inquiries or discussion points raised by the audience. ***

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I believe that one of the positive aspects of the responses is that it structures the presentation. In other words, the plan for preparing Google Inc's financial performance presentation.

The downside is that you will still have to search for the information you want to use in your slides. You will still need to open your "personal or business briefcase" to find the words you need to make your presentation stand out in your audience's eyes.

The above response is like purchasing a piece of cloth and taking it to Mr. Tailor. Based on your body physics and fashion, he will suggest you a suit design.

In conclusion, you can save time by relying on the chatbot's presentation plan or structure. However, you will still need to use your energy in placing the "alphabets and numbers" in the white rectangular boxes to complete your presentation.

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Business letters

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12. BUSINESS LETTERS ChatGPT can prepare letters for you and the key point for any business is to save time and money on repetitive tasks. Does it take someone's job? Not necessarily! Bots are operated and checked by humans.

Nevertheless, human jobs remain safe, and it also depends on how an organization redeploys its current resources rather than making them redundant. It is more about balancing the right equation.

One of Australian banks is already using ChatGPT to generate draft letters for customers. There are hundreds of organizations around the world integrating the bot into their teams and interacting with it. The bot is not alone, it is sexy enough to attract people around it.

The following are examples of sample letters generated by the bot:

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Please write a sample business letter introducing a team to a client.

[Your Name] [Your Title] [Your Company] [Company Address] [City, State, ZIP Code] [Date] [Client's Name] [Client's Title] [Client's Company] [Client's Address] [City, State, ZIP Code]

Dear [Client's Name], Subject: Introduction of [Your Company] Team I hope this letter finds you in good health and high spirits. On behalf of [Your Company], I am delighted to introduce you to our exceptional team of professionals who will be working closely with you to deliver outstanding services and solutions tailored to meet your business needs.

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At [Your Company], we firmly believe that a strong and collaborative partnership is the foundation for success. We have carefully assembled a team of highly skilled individuals who possess extensive expertise and experience in the [industry/field]. Each member of our team brings unique perspectives and talents, ensuring a comprehensive approach to your projects.

Allow me to introduce the key members of our team: 1. [Team Member 1]: [Briefly describe their role, experience, and key strengths] 2. [Team Member 2]: [Briefly describe their role, experience, and key strengths] 3. [Team Member 3]: [Briefly describe their role, experience, and key strengths] 4. [Team Member 4]: [Briefly describe their role, experience, and key strengths] Our team is dedicated to delivering excellence, maintaining open lines of communication, and providing you with exceptional support throughout our collaboration. We understand the importance of delivering projects on time, within budget, and to the highest standards of quality.

We have had the opportunity to thoroughly review your requirements and objectives, and we are confident that our team has the knowledge, skills, and resources to successfully meet and exceed your expectations. We are excited to begin working with you to achieve your business goals and create a mutually beneficial partnership.

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Should you have any questions or require further information, please do not hesitate to reach out to me directly at [your contact information]. We are committed to fostering a transparent and productive relationship, and we are eager to hear your feedback and input throughout our journey together.

Thank you for choosing [Your Company] as your trusted partner. We are thrilled about the opportunity to work with you and are confident that our team will deliver exceptional results. We look forward to meeting with you soon to discuss the details further.

Warm regards,

[Your Name] [Your Title] [Your Company] ***

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Q) Please write a letter of welcome to an employee.

ChatGPT: [Your Name] [Your Title] [Your Company] [Company Address] [City, State, ZIP Code] [Date] [Employee's Name] [Employee's Address] [City, State, ZIP Code] Dear [Employee's Name], Subject: Warm Welcome to [Company Name] I am delighted to extend a warm welcome to you as the newest member of our team here at [Company Name]. On behalf of everyone at [Company Name], I would like to express our excitement and enthusiasm about having you on board.

We believe that our company is only as strong as the individuals who make it up, and we are confident that your skills, experience, and unique perspectives will greatly contribute to our ongoing success. Your appointment to [Employee's Position] reflects our confidence in your abilities and the value we believe you will bring to our organization.

At [Company Name], we strive to create a supportive and inclusive work environment that encourages collaboration, innovation, and personal growth. We foster a culture that values teamwork, professionalism, and dedication to excellence. We are confident that you will find our workplace welcoming, vibrant, and conducive to your professional development.

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As you settle into your new role, you will have the opportunity to work with a talented team of professionals who are passionate about what they do. Our company prides itself on maintaining an open and transparent communication channel, so feel free to reach out to your colleagues and supervisors for guidance, support, and collaboration.

To help you familiarize yourself with our organization, we have arranged an orientation program on [Orientation Date]. This program will provide you with essential information about our company's policies, procedures, and culture, as well as an opportunity to meet your teammates and key stakeholders. Please ensure that you mark your calendar for this important event.

We are confident that you will quickly adapt to your new role and make a positive impact within our organization. We are excited about the fresh perspectives and ideas you will bring to the table, and we look forward to witnessing your growth and accomplishments at [Company Name].

Once again, welcome to the team! We are thrilled to have you with us, and we are confident that your tenure at [Company Name] will be both rewarding and fulfilling. Should you have any questions or need assistance, please do not hesitate to reach out to me or the HR department.

Wishing you all the best for a successful journey with [Company Name].

Warm regards, [Your Name] [Your Title] [Company Name] ***

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What else do you need? As a free assistant, it saves you time and gives you something you can use right away. Letter formats are acceptable. In addition, the chatbot also highlights areas where you need specific words based on your needs.

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Tax

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13. TAX There is no doubt that the bot can easily provide tax information for any country. The interesting thing would be to check whether the bot has potential to perform or at least give sample tax calculations for any type of tax.

The following illustration shows that the bot can also calculate taxes:

Q) Please calculate Canadian Tax on a monthly salary of $10,000.

ChatGPT To calculate the Canadian tax on a monthly salary of $10,000, we need to consider the federal and provincial income tax rates. However, please note that tax rates can vary depending on the province or territory in which you reside. For the purpose of this calculation, I will assume that you reside in Ontario, which has its own tax rates.

In Ontario, the tax rates for 2023 are as follows: - Federal tax rates: - 15% on the first $49,020 of taxable income - 20.5% on the portion of taxable income over $49,020 up to $98,040 - 26% on the portion of taxable income over $98,040 up to $151,978 - 29% on the portion of taxable income over $151,978 Continued…

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- Ontario tax rates: - 5.05% on the first $44,740 of taxable income - 9.15% on the portion of taxable income over $44,740 up to $89,482 - 11.16% on the portion of taxable income over $89,482 up to $150,000 - 12.16% on the portion of taxable income over $150,000 up to $220,000 - 13.16% on the portion of taxable income over $220,000 To calculate the tax on a monthly salary of $10,000, we need to determine the annual income first. Since there are 12 months in a year, we multiply the monthly salary by 12: Annual Salary = Monthly Salary x 12 Annual Salary = $10,000 x 12 = $120,000 Now, let's calculate the federal and provincial income tax separately: Federal Income Tax: - Tax on the first $49,020: $49,020 x 15% = $7,353 - Tax on the portion from $49,020 to $98,040: ($120,000 - $49,020) x 20.5% = $14,171.10 - Total federal tax: $7,353 + $14,171.10 = $21,524.10 Ontario Income Tax: - Tax on the first $44,740: $44,740 x 5.05% = $2,262.37 - Tax on the portion from $44,740 to $89,482: ($120,000 - $44,740) x 9.15% = $6,187.31 - Tax on the portion from $89,482 to $150,000: ($120,000 - $89,482) x 11.16% = $3,413.03 - Total Ontario tax: $2,262.37 + $6,187.31 + $3,413.03 = $11,862.71 Total Tax: - Total federal and provincial tax: $21,524.10 + $11,862.71 = $33,386.81 Continued…

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Therefore, the estimated Canadian tax on a monthly salary of $10,000 in Ontario would be approximately $33,386.81 per year. Please note that this is just an estimation, and actual tax calculations may vary depending on your specific situation and any applicable deductions or credits. It is always recommended to consult with a professional tax advisor or use official tax calculators for accurate calculations. ***

In this example, my focus was to check whether ChatGPT understands the basics of tax calculation such as different tax bands. It demonstrated that in the above example. Please remember there are no live updates embedded in the bot at the time of writing this book. I hope this happens in the future. If there is any change in tax rates you need to manually adjust those in the calculation. It gives you the basic tax template which is helpful for a learner or anyone new to taxation.

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The following is an example of an Australian tax calculation obtained using ChatGPT:

Q) Please calculate Australian Tax on a monthly salary of $10,000.

ChatGPT: To calculate the Australian tax on a monthly salary of $10,000, we need to consider the tax rates and thresholds set by the Australian Taxation Office (ATO) for the current financial year (2022-2023). The tax rates for residents are as follows: - Taxable income up to $18,200: No tax - Taxable income from $18,201 to $45,000: 19% on the portion over $18,200 - Taxable income from $45,001 to $120,000: $3,572 plus 32.5% on the portion over $45,000 - Taxable income from $120,001 to $180,000: $29,467 plus 37% on the portion over $120,000 - Taxable income over $180,000: $51,667 plus 45% on the portion over $180,000 To calculate the tax on a monthly salary of $10,000, we multiply the monthly salary by 12: Annual Salary = Monthly Salary x 12 Annual Salary = $10,000 x 12 = $120,000 Continued…

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Now, let's calculate the tax based on the annual salary: - Taxable income up to $18,200: $0 - Taxable income from $18,201 to $45,000: ($45,000 - $18,200) x 19% = $5,215.80 - Taxable income from $45,001 to $120,000: ($120,000 - $45,000) x 32.5% = $22,562.50 - Total tax: $5,215.80 + $22,562.50 = $27,778.30 Therefore, the estimated Australian tax on a monthly salary of $10,000 would be approximately $27,778.30 per year. Please note that this calculation assumes you are a resident for tax purposes and does not consider any specific deductions or offsets that may apply in your individual circumstances. For accurate calculations tailored to your situation, it is advisable to consult with a professional tax advisor or use official tax calculators provided by the Australian Taxation Office. ***

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The more information is given to the bot for a tax amount calculation, the better results can be expected from the bot. To the best of my knowledge, the bot has calculated an appropriate and reasonable tax amount for Australian salaries. It is close to the calculation I did for the Australian tax amount. In addition, the chatbot did not mention about deductions between gross and net pay. It used the term "taxable income" directly. As I mentioned earlier in the book, 100% accuracy and perfection should not be expected from the bot. It is an assistant and you need to act as a team leader. This is to ensure that your assistance gives you reasonable information on which you can do further work and checks.

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Accounting

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14. ACCOUNTING Accounting is a world where things change rapidly due to changes in the corporate world, which is never stable, but accounting basics never change.

ChatGPT can give you a lot of accounting information as well as help you dig out specific accounting standards and the information in them.

Take a look at how ChatGPT can assist with application aspects, such as knowing the correct accounting entries and using complex accounting standards, such as IFRS 9 - Financial instruments, as well as understanding them.

I tried getting a response from the bot regarding an accounting entry for an accounting transaction.

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Q) Could you please provide me with an accounting entry for "A company bought a computer worth $5,000 ChatGPT: Certainly! Here's an example of the accounting entry for a company buying a computer worth $5,000: Assuming the company pays for the computer in cash, the entry would be as follows: Debit: Computer (or Computer Equipment) $5,000 Credit: Cash (or Bank) $5,000 This entry reflects the increase in the asset account (Computer) by the purchase cost of $5,000. On the other side, it shows a decrease in the company's cash (or bank) account as they pay for the computer.

Continued…

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If the company purchased the computer on credit or with a loan, the entry would be different. Here's an example assuming the purchase is made on credit: Debit: Computer (or Computer Equipment) $5,000 Credit: Accounts Payable (or Vendor/Supplier Name) $5,000 In this case, the entry recognizes the increase in the asset account (Computer) by the purchase cost of $5,000. The credit entry establishes a liability in the form of an accounts payable, representing the amount owed to the vendor or supplier for the computer purchase.

Remember, these entries serve as general examples, and the specific accounts used may vary based on the company's chart of accounts or industry-specific requirements. It's always advisable to consult with an accountant or financial professional for accurate and specific accounting entries based on your company's circumstances. ***

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The response is correct and precise, and the bot has done a decent job here. The bot created scenarios and gave accounting entries for each scenario such as cash and credit transactions.

The chatbot is not 100% guaranteed to give you correct responses every time; there might be errors causing erroneous information.

In addition, ChatGPT can be used for complex accounting standards such as IFRS 9 – Financial Instruments.

I asked the bot about complex areas in the accounting standard. The following is the response: Q) What are the complex areas in IFRS 9 Financial Instruments?

ChatGPT: IFRS 9 Financial Instruments is a complex standard that provides guidance on the classification and measurement of financial instruments, impairment of financial assets, and hedge accounting. Some of the areas that are considered complex in IFRS 9 include: 1.

Classification and Measurement: IFRS 9 introduces a principlesbased approach to classify and measure financial assets. The standard includes various categories such as amortized cost, fair value through other comprehensive income (FVOCI), and fair value through profit or loss (FVTPL). Determining the appropriate classification for financial assets can be challenging, especially when considering the business model and contractual cash flow characteristics.

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2. Impairment: IFRS 9 introduces the expected credit loss (ECL) model, which requires entities to recognize impairment losses based on expected credit losses over the lifetime of financial instruments. Estimating credit losses involves complex judgment and relies on historical data, forward-looking information, and various risk factors. Entities need to assess the probability of default, loss given default, and exposure at default, considering both quantitative and qualitative factors.

3. Hedge Accounting: IFRS 9 includes a more principles-based approach to hedge accounting, allowing entities to better align their risk management strategies with accounting. The standard introduces new hedge accounting requirements, including the concept of hedge effectiveness, hedge documentation, and effectiveness testing. Applying hedge accounting can be complex due to the identification and assessment of hedged items, the measurement and testing of hedge effectiveness, and the ongoing monitoring and rebalancing of hedging relationships.

4. Transition and Disclosure: Transitioning to IFRS 9 can be complex, particularly for entities transitioning from the previous standard (IAS 39).

Entities need to determine the appropriate transition approach and consider the impact on financial statements, including changes in classification, measurement, and impairment of financial instruments. Additionally, IFRS 9 requires enhanced disclosures to provide users of financial statements with more detailed information about financial instruments and the associated risks.

These are just some of the complex areas in IFRS 9 Financial Instruments. The standard involves detailed requirements and requires careful analysis and judgment in its application. It is recommended for entities to seek professional advice and stay updated with the latest interpretations and guidance related to IFRS 9 to ensure compliance and accurate financial reporting. ***

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In response to my question, the bot provided a relevant answer. There has been a good deal of balance in the answer above, mentioning the key complex areas of the standard. It highlighted four complex areas such as financial instruments classification and measurement, impairment, hedge accounting and disclosures. A general idea or guidance from the bot was given here.

The standard complexity will vary according to the circumstances.

I asked some additional questions to the bot about IFRS 9 and it gave me answers to the extent that I needed. These answers could be used and treated as a good starting point.

The following are the bot responses: Q How do we calculate expected credit loss as per IFRS 9?

ChatGPT: According to IFRS 9, expected credit loss (ECL) is calculated by considering both the probability of default (PD) and the loss given default (LGD). The calculation of ECL involves a three-stage approach, depending on the credit quality of the financial instrument. Here's a general overview of the steps involved in calculating ECL: 1. Identify Stage of Credit Quality: - Stage 1: When a financial instrument has not experienced a significant increase in credit risk since initial recognition.

- Stage 2: When a financial instrument has experienced a significant increase in credit risk since initial recognition.

- Stage 3: When a financial instrument is considered to be credit-impaired.

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2. Estimate Probability of Default (PD): - PD represents the likelihood of default within a specified time horizon.

Entities need to assess the historical default rates, industry-specific factors, macroeconomic conditions, and other relevant information to estimate PD. This estimation involves quantitative analysis, statistical models, and expert judgment.

3. Estimate Loss Given Default (LGD): - LGD represents the portion of the financial instrument's carrying amount that is not expected to be recovered if a default occurs. Entities need to assess the potential loss in the event of default, considering collateral, guarantees, and other factors. This estimation also involves quantitative analysis, historical data, and expert judgment.

4. Calculate ECL: - In Stage 1, ECL is measured as the 12-month ECL, which represents the portion of the lifetime expected credit losses that are expected to result from default events within the next 12 months.

- In Stage 2 and Stage 3, ECL is measured as the lifetime ECL, which represents the expected credit losses over the entire life of the financial instrument.

The calculation of ECL requires ongoing monitoring and reassessment of credit risk, considering both quantitative and qualitative information. It involves the use of historical data, forward-looking information, economic indicators, and expert judgment. Entities need to consider a range of possible outcomes and update their ECL estimates regularly based on new information and changes in credit risk.

It's important to note that the specific methodologies and approaches for estimating PD and LGD may vary based on the nature of financial instruments, available data, and industry-specific requirements. Entities should consult relevant accounting standards, applicable regulatory guidance, and seek professional advice to ensure compliance with IFRS 9 and accurate calculation of expected credit loss. ***

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The chatbot discussed the calculation of expected credit loss in the above response. It discussed identification of credit stages and default probability and loss calculation. It missed information about default at exposure (EAD) in the response. It also depends on the keywords you use to ask the chatbot. Apart from EAD, the response is valid.

Q) Please give me tabular form expected credit loss template as per IFRS 9.

ChatGPT: Certainly! Here's a simplified tabular form template for calculating expected credit loss (ECL) as per IFRS 9. This template provides a general structure for organizing the information required for estimating ECL. Financial Instrument

Stage

Instrument Stage 1 1 Instrument Stage 2 2 Instrument Stage 3 3 In this template: 1.

2.

Probability of Default (PD) PD1

Loss Given Default (LGD) LGD1

Exposure at Default (EAD) EAD1

Expected Credit Loss (ECL) ECL1

PD2

LGD2

EAD2

ECL2

PD3

LGD3

EAD3

ECL3

Financial Instrument: This column represents the specific financial instruments or accounts that are subject to ECL estimation.

Stage: This column indicates the stage of credit quality assigned to each financial instrument, as determined based on the significant increase in credit risk since initial recognition and the credit impairment status.

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3.

4.

5.

6.

Probability of Default (PD): This column captures the estimated probability of default for each financial instrument. It reflects the likelihood of default within a specified time horizon.

Loss Given Default (LGD): This column represents the estimated loss given default for each financial instrument. It indicates the portion of the financial instrument's carrying amount that is not expected to be recovered if a default occurs.

Exposure at Default (EAD): This column represents the exposure at default for each financial instrument. It reflects the amount that would be at risk if a default were to occur.

Expected Credit Loss (ECL): This column captures the calculated expected credit loss for each financial instrument. It considers the PD, LGD, and EAD, and represents the estimated credit losses over the specified time horizon or the entire life of the financial instrument.

Please note that the template is a simplified example, and the specific contents and structure may vary based on the complexity and characteristics of the financial instruments, as well as the entity's specific requirements and methodologies for ECL estimation.

It is important to gather accurate data, apply appropriate estimation techniques, and adhere to the principles and requirements of IFRS 9 when populating this template. Professional advice and consultation with accounting and financial experts are recommended to ensure compliance and accurate calculation of ECL. ***

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Amazingly, the bot responds to any question asked, at least 99.5%. It mentioned EAD in this response compared to the last one. Any responses from the bot need to be rechecked before we can use them. Most of the responses given by the bot are appropriate but doing a quick check is a safety net.

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Marketing

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15. MARKETING Marketing plays a very significant role for an organization in promoting its products and services. It is considered one of the most significant functions of an organization. The right marketing strategy is crucial if you want desired results. For example, an increase in sales by X % within a certain period of time.

There are a number of ways ChatGPT can support a business' marketing function, such as sharing results of secondary market research or sharing different ways to conduct primary market research or market research more generally by giving ideas on how to target the right audience for marketing purposes. Furthermore, it can also help in implementing various marketing models such as the four Ps (Product, Price, Place, and Promotion) to improve sales effectiveness.

Below are some examples of ChatGPT usability in marketing.

Through the use of the chatbot, I gained some insight into the target audience of a coffee business in Bangkok as a case study. I used it as part of my testing and research process.

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Q) Please tell me specifically about target audience for marketing purpose of coffee business in Bangkok.

For marketing purposes, the target audience for a coffee business in Bangkok can vary based on the specific brand, concept, and location. However, here are some general target audience segments that coffee businesses in Bangkok often focus on: 1. Young Urban Professionals: Bangkok is a bustling city with a large population of young professionals working in various industries. They are often seeking convenient and stylish coffee shops where they can work, socialize, or relax. This target audience values quality coffee, comfortable seating, fast Wi-Fi, and a trendy atmosphere.

2. Students and Creative Individuals: Bangkok is home to numerous universities and art schools, attracting a significant population of students and creative individuals. Coffee shops that offer a relaxed ambiance, affordable pricing, and a creative environment tend to appeal to this segment. Discounts or loyalty programs targeting students can also be effective.

3. Tourists and Expats: Bangkok is a popular tourist destination, and coffee businesses located in tourist areas can attract both international tourists and expatriates. Coffee shops that offer a mix of local and international flavors, comfortable seating, and a welcoming atmosphere can be particularly appealing to this target audience.

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4. Health-Conscious Consumers: Bangkok has seen an increased interest in health and wellness trends. Targeting health-conscious individuals with offerings such as organic, sustainable, or ethically sourced coffee can be effective. Emphasizing health benefits, low-calorie options, and alternative milk choices can also resonate with this audience.

5. Coffee Enthusiasts: Bangkok has a growing community of coffee enthusiasts who appreciate specialty coffee, brewing techniques, and unique flavors. Targeting this audience requires a focus on high-quality beans, brewing methods like pour-over or cold brew, knowledgeable staff, and an emphasis on the coffee's origin and tasting notes.

6. Social Media Influencers: Bangkok has a vibrant social media scene, and many influencers seek visually appealing coffee shops for their content.

Creating Instagrammable spaces with unique interior design, aesthetically pleasing latte art, or visually stunning drinks can attract influencers and generate online buzz.

Remember, these target audience segments are not mutually exclusive, and there may be overlap between them. It's crucial to conduct market research and analyze the local coffee culture to refine your target audience based on your specific business goals and brand positioning. ***

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The chatbot gave a reasonable response by sharing that there are many factors that influence the target audience of a coffee business in Bangkok. These factors depend on a brand, a concept, and a company’s location. However, some general target audience segments include young urban professionals seeking convenience and style, students and creative individuals attracted to a relaxed ambiance, tourists and expats who are seeking a mix of local and international flavors, health-conscious consumers looking for organic and sustainable options, coffee enthusiasts who appreciate specialty coffee, and social media influencers looking for visually appealing spaces to live in. There is no correlation between these segments. Market research is necessary to refine a business' target audience.

This is an excellent starting point for anyone who wants to break down their research further at a granular level. It will add value and depth to it as a whole. Please remember that the bot is your assistance, and you need to roll your eyes at all of its outputs as you use it.

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4 Ps (Product, Price, Place and Promotion) I used ChatGPT for the 4Ps model application to Unilever. The following is the result. It gave the result without input such as a report weblink: Q)Please prepare a report discussing 4 Ps of Unilever.

ChatGPT: Title: Unilever: A Analysis of the 4 Ps Introduction: Unilever is a multinational consumer goods company that operates in various sectors including food and beverages, personal care, and home care.

The company has a diverse portfolio of well-known brands, such as Dove, Axe, Knorr, Lipton, and Omo, among many others. This report aims to analyze the 4 Ps (Product, Price, Place, and Promotion) of Unilever, providing insights into their marketing strategies and how they create value for their target customers.

1. Product: Unilever offers a wide range of products across different categories, catering to the diverse needs and preferences of consumers worldwide. The company focuses on developing innovative and sustainable products that align with its vision of creating a better future. Unilever invests in research and development to introduce new formulations, packaging, and product extensions. For instance, they have introduced environmentally friendly packaging options and launched products with natural or organic ingredients to meet the growing demand for sustainable and healthier choices. Unilever also emphasizes product quality, functionality, and benefits, ensuring they address specific consumer needs effectively.

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2. Price: Unilever adopts various pricing strategies based on the specific product category and market conditions. The company aims to offer products that provide value for money while remaining competitive in the marketplace.

Unilever utilizes a combination of pricing strategies, including cost-based pricing, market-based pricing, and value-based pricing. They consider factors such as production costs, competition, customer demand, and perceived value when determining prices for their products. Unilever also offers different product variants at different price points to cater to different consumer segments, ensuring affordability and accessibility.

3. Place: Unilever has a strong global presence, with operations in numerous countries and a distribution network that reaches consumers across the globe. The company utilizes various channels to make its products available to consumers, including supermarkets, convenience stores, online platforms, and direct selling. Unilever partners with retailers and distributors to ensure wide distribution and availability of their products in both urban and rural areas.

They also invest in logistics and supply chain management to streamline the distribution process, reduce lead times, and maintain product freshness.

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4. Promotion: Unilever employs a comprehensive promotion mix to create brand awareness, influence consumer behavior, and drive sales. The company utilizes traditional marketing channels such as television, print media, and outdoor advertising to reach a broad audience. Additionally, Unilever embraces digital marketing and social media platforms to engage with consumers, create interactive campaigns, and leverage influencer marketing.

They also invest in public relations, sponsorships, and cause-related marketing initiatives to build a positive brand image and enhance consumer loyalty. Unilever's promotional activities often emphasize their commitment to sustainability, social responsibility, and addressing social issues.

Conclusion: Unilever's marketing strategies revolve around the 4 Ps, ensuring that their products meet customer needs, remain competitively priced, are accessible through various channels, and are effectively promoted. By focusing on innovation, sustainability, and social responsibility, Unilever strives to differentiate its products and build strong brand equity. The company's approach to the 4 Ps enables them to connect with their target consumers, create value, and maintain a competitive edge in the global consumer goods market. ***

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The chatbot is like an angel in your life who helps you out and makes your life easier. It appears that the chatbot response is within the expected range. In a nutshell, it tells us about Unilever's marketing strategies, and we see them through the lens of the 4 Ps (Product, Price, Place, and Promotion). As a global company, Unilever provides a wide range of products across a range of categories. As part of its pricing strategies, the company considers a number of factors, such as costs, competition, and value. Having a strong global presence, Unilever utilizes multiple distribution channels to reach people worldwide.

The number of promotion channels includes traditional, digital, and public relations channels, in addition to initiatives related to causes and the promotion mix.

There is a strong focus on innovation, sustainability, and social responsibility at Unilever, which helps differentiate their products in the marketplace and maintain their competitive edge.

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Product life cycle The life cycle of a product is like as a person's life cycle in the real world. As a general rule, there are five stages in the life cycle of any product, such as development, introduction, growth, maturity, and the end stages.

For example, Apple's iPhone 14 is currently in the maturation stage and will soon reach the end stage when iPhone 15 is launched.

I tested ChatGPT about Apple’s iPhone 14 product lifecycle. Please see the response on the next page.

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Q) Please tell me about product life cycle of iphone 14.

ChatGPT: As an AI language model, my knowledge is based on information available up until September 2021, and I don't have access to real-time data or information about specific products released after that date. As of my last update, the latest iPhone model available was the iPhone 13 series.

Therefore, I cannot provide specific details about the product life cycle of the iPhone 14 or any subsequent models.

However, I can provide you with a general understanding of a typical product life cycle and how it may apply to the iPhone series based on previous releases.

1. Introduction Stage: During this stage, a new iPhone model, such as the iPhone 14, would be introduced to the market. Apple would typically generate buzz and anticipation through product announcements, marketing campaigns, and media coverage. The iPhone 14 would feature new design elements, upgraded hardware, and software improvements to attract early adopters and tech enthusiasts.

2. Growth Stage: In the growth stage, sales and market share of the iPhone 14 would increase rapidly. The product's features and competitive pricing would attract a wider audience, including early adopters and more mainstream consumers. Apple would expand distribution and marketing efforts to reach a broader customer base. During this stage, the company may also introduce variations of the iPhone 14, such as different storage capacities or color options, to appeal to different consumer preferences.

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3. Maturity Stage: In the maturity stage, the iPhone 14 would have reached a significant market penetration, and sales growth would start to slow down. Competition from other smartphone manufacturers would intensify. Apple may respond by introducing incremental updates, software enhancements, or special editions to maintain customer interest and extend the product's life cycle. Pricing strategies, promotions, and customer loyalty programs may also be employed to retain existing customers and attract new ones.

4. Decline Stage: At the decline stage, newer iPhone models would likely have been released, such as the iPhone 15 or beyond. The iPhone 14 would face a decline in sales as consumers shift their attention and purchasing preferences to the newer models. Apple may gradually reduce marketing and distribution efforts for the iPhone 14, offering it as a more budget-friendly option or discontinuing it altogether.

It's important to note that the actual product life cycle and duration can vary based on various factors, including market conditions, technological advancements, and consumer preferences. To obtain the most accurate and up-to-date information about the product life cycle of the iPhone 14 or any other specific product, it is recommended to refer to official announcements and updates from Apple. ***

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ChatGPT has the database up to a certain date.

However, it still came up with a reasonable and logical answer.

I tried getting a response from ChatGPT regarding the Motorola Razr product life cycle:

Q) Please tell me about Motorola Razr product life cycle.

The Motorola Razr is a line of mobile phones originally introduced in 2004 and later revived as a foldable smartphone in 2019. The product life cycle of the Motorola Razr can be described as follows: 1. Introduction Stage: The original Motorola Razr, released in 2004, was a revolutionary flip phone that gained immense popularity due to its sleek design and innovative features. It quickly became a cultural icon and achieved significant sales success during its introduction stage. The phone's slim profile, metallic finish, and advanced features made it a desirable choice among consumers.

2. Growth Stage: During the growth stage, the popularity of the Motorola Razr continued to soar, with increasing sales and market share. The phone's unique design, combined with its advanced features like a high-resolution display and a built-in camera, appealed to a broad consumer base. The Razr brand became synonymous with style and functionality, attracting both fashion-conscious individuals and technology enthusiasts.

3. Maturity Stage: After a period of significant growth, the original Razr eventually entered the maturity stage as newer smartphone models with more advanced features entered the market. While still maintaining a loyal customer base, sales and market share of the original Razr started to decline. However, the brand continued to enjoy recognition and nostalgia, contributing to its presence in the market.

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4. Revival and Renewal Stage: In 2019, Motorola revived the Razr brand by launching the Motorola Razr (2019), a foldable smartphone with a flexible display. This marked a new chapter in the product life cycle of the Razr, with a fresh design and innovative technology. The foldable Razr aimed to capture the attention of consumers seeking a blend of nostalgia and cutting-edge features. The revival stage provided an opportunity for the Razr brand to reenter the market and attract consumers looking for unique form factors and enhanced functionality.

It's important to note that the specific duration of each stage in the product life cycle can vary based on factors such as market conditions, competition, and consumer demand. Additionally, the success of the revival of the Razr brand and its subsequent life cycle stages would depend on factors such as the reception of the foldable smartphone concept and the ability to compete with other flagship devices in the market.

For the most up-to-date information about the current status of the Motorola Razr and its subsequent life cycle stages, it is recommended to refer to official announcements and updates from Motorola or relevant industry sources. ***

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As the information relating to my question falls within ChatGPT's database, the answer it provided me to my question was more precise than the answer it provided to my question relating to iPhone 14.

There is no doubt that ChatGPT's information is helpful as it highlighted above that Motorola Razr has four stages in its product life cycle. During its debut, the original Razr gained immense popularity and sales success. Sales and market share increased as Razr popularity soared. In the maturity stage, sales declined as new smartphones with advanced features entered the market, but the brand maintained its recognition and nostalgia. The revival and renewal phase began in 2019 with Motorola's foldable Razr, a fusion of nostalgia and cutting-edge functionality. Revival success depends on market conditions, competition, and consumer demand throughout each stage.

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Human Resources

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16. HUMAN RESOURCES A human resources department is one of the key departments in any organization responsible for hiring and maintaining human resources. It is the backbone of an organization’s success. Without it, a company could not carry out its mission and achieve its core goals and objectives.

ChatGPT can benefit any organization’s human resources department. There are a number of ways it can be used, such as setting policies as discussed in the book earlier, setting up payroll, applying any human resources frameworks or models. Additionally, it can be used to understand how to motivate employees or provide them with adequate health and wellness care.

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Q) Please give me an example of setting human resources register.

ChatGPT: Certainly! Here's an example of setting up a Human Resources (HR) register.

An HR register is a centralized document that provides a comprehensive overview of employee information, ensuring easy access to key details and facilitating efficient HR management. The register can be maintained in a spreadsheet format or through specialized HR software. Here's an example of the information that can be included in an HR register: <Please refer to the table on next page> Let's go through the columns in the HR register example: 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

Employee ID: A unique identifier assigned to each employee for easy reference.

Full Name: The employee's full name.

Position: The job title or position held by the employee.

Department: The department or team to which the employee belongs.

Date of Joining: The date when the employee joined the company.

Contact Information: The employee's contact details, such as email address or phone number.

Salary Details: Information regarding the employee's salary, including the annual or monthly amount.

Leave Balance: The employee's current leave balance, indicating the number of days available.

Training Records: Details of any training or professional development programs attended by the employee.

Performance Evaluations: Information about the employee's performance evaluations, including dates and outcomes.

Remarks: Additional notes or comments, such as significant achievements, disciplinary actions, or special circumstances.

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The HR register serves as a central repository of employee information, enabling HR professionals and managers to have a quick overview of important details and efficiently manage HR-related processes. It helps track employee data, monitor leave balances, assess training needs, and maintain performance records.

Please note that the specific columns and information included in the HR register can vary based on organizational requirements and policies. It's important to customize the register to meet the specific needs of your company and ensure compliance with applicable data protection and privacy regulations.

***

Please refer to the next page for the HR register sample generated by the chatbot.

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John Smith

Sarah Brown Analyst Finance 2021-07-01 sarah@example.com $50,000 10 days Training C 2022 Performance Review

Lisa Johnson

HR Assistant

HR

2019-09-10

lisa@example.com

$40,000

20 days

Training D

2021 Performance Review

Remarks

Performance Evaluations

Training Records

Training A, B 2021 Performance Review

Leave Balance

Salary Details

Contact Information

Date of Joining

Department

Position

Full Name

15 days

$70,000

john@example.com

2020-02-15

Sales

Manager

001

002

003

In brief, the bot tells us that an HR register is a central repository of employee data. HR professionals and managers can use it to track employee information, track leave balances, assess training needs, and record employee performance.

As an example, the chatbot provides an example of how to set up an HR register. This can be done using spreadsheet format or HR software tailored to your requirements.

It makes our lives easier by providing samples or points relevant to a topic. This saves us time compared to creating things from scratch. ChatGPT generally requires reviewing the information generated before using it. There is a possibility that the chatbot can make mistakes when processing and providing information.

As a matter of fact, coming up with something in draft form or "near-ready" form is not bad. This is where you can take it, polish it, bring it to the final state you want. ***

In a nutshell, ChatGPT is a quick reference tool, and it is getting better with time. This is an exciting innovation in the world of information technology.

Please use the bot as a quick guide or reference point rather than relying on it 100%. For students, please do not misuse it for doing your homework otherwise you will not build the skills you genuinely need in your field or subject. Privacy and information security are issues like COVID-19 for which experts need a sustainable vaccine. ChatGPT is your new team member in the world of business and finance. Greet it, kiss it, and hold it!

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List of references 1. About AI [Online], Source: https://openai.com/about (Accessed on 01 June 2023) 2. Term of Use [Online], Source: https://openai.com/policies/terms-of-use (Accessed on 15 July 2023)

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Alex: The play edition is like a guide. @mr: Yes, true – there is a section dedicated to ChatGPT updates and Q&A services on @mrbooks’s website.

Alex: Gotcha! Any plans for another edition? @mr: Stay tuned and regularly visit www.amrwebbox.com

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