scholarly journals Calculating the Unknown. Rationalities of Operational Risk in Financial Institutions

2010 ◽  
Vol 8 (2) ◽  
pp. 237-250 ◽  
Author(s):  
Hajo Greif ◽  
Matthias Werner
Keyword(s):  
Information Technology ◽  
Risk Perception ◽  
Financial Crisis ◽  
Financial Institutions ◽  
Low Frequency ◽  
Risk Category ◽  
Operational Risks ◽  
High Magnitude ◽  
Risk Analysis And Management

In this paper, findings of a study on the perception and policing of information-technology (ICT) related operational risks are presented, with a view on identifying some part of the role that these technologies, and the specific organisational settings in which they are embedded, may have played in the making of the 2007+ financial crisis. The study’s findings concern, firstly, biases in risk perception that turn a blind eye towards certain operational risks; secondly, competing, qualitative vs. quantitative norms and methods of risk analysis and management and their significance for the governance of financial institutions; and thirdly, the role of ICTs as organisational technologies that work both as sources and as remedies of operational risks. The use of ICTs in financial institutions, it is concluded, while not being fully acknowledged in its organisational role, caters to the calculative rationality to which the analysis, management and governance of operational and other risks are increasingly subjected. Presuming that all kinds of risk can be made calculable and computable, this calculative rationality either misses out or obscures one important risk category: low frequency/ high magnitude risks, which tend to cross the boundary between calculable risk and genuine uncertainty of knowledge.

scholarly journals Calculating the Unknown. Rationalities of Operational Risk in Financial Institutions

2010 ◽  
Vol 8 (2) ◽  
pp. 237-250
Author(s):  
Hajo Greif ◽  
Matthias Werner
Keyword(s):  
Information Technology ◽  
Risk Perception ◽  
Financial Crisis ◽  
Financial Institutions ◽  
Low Frequency ◽  
Risk Category ◽  
Operational Risks ◽  
High Magnitude ◽  
Risk Analysis And Management

In this paper, findings of a study on the perception and policing of information-technology (ICT) related operational risks are presented, with a view on identifying some part of the role that these technologies, and the specific organisational settings in which they are embedded, may have played in the making of the 2007+ financial crisis. The study’s findings concern, firstly, biases in risk perception that turn a blind eye towards certain operational risks; secondly, competing, qualitative vs. quantitative norms and methods of risk analysis and management and their significance for the governance of financial institutions; and thirdly, the role of ICTs as organisational technologies that work both as sources and as remedies of operational risks. The use of ICTs in financial institutions, it is concluded, while not being fully acknowledged in its organisational role, caters to the calculative rationality to which the analysis, management and governance of operational and other risks are increasingly subjected. Presuming that all kinds of risk can be made calculable and computable, this calculative rationality either misses out or obscures one important risk category: low frequency/ high magnitude risks, which tend to cross the boundary between calculable risk and genuine uncertainty of knowledge.

scholarly journals High-magnitude innovators as keystone individuals in the evolution of culture

2018 ◽  
Author(s):  
Michal Arbilly
Keyword(s):  
Population Dynamics ◽  
Food Webs ◽  
Computer Simulations ◽  
Cultural Evolution ◽  
Keystone Species ◽  
Low Frequency ◽  
Independent Innovation ◽  
High Magnitude ◽  
Behavioural Repertoire

AbstractBorrowing from the concept of keystone species in ecological food webs, a recent focus in the field of animal behaviour has been keystone individuals: individuals whose impact on population dynamics is disproportionally larger than their frequency in the population. In populations evolving culture, such may be the role of high-magnitude innovators: individuals whose innovations are a major departure from the population’s existing behavioural repertoire. Their effect on cultural evolution is twofold: they produce innovations that constitute a ‘cultural leap’, and, once copied, their innovations may induce further innovations by conspecifics (socially induced innovations), as they explore the new behaviour themselves. I use computer simulations to study the co-evolution of independent innovations, socially induced innovations, and innovation magnitude, and show that while socially induced innovation is assumed here to be less costly than independent innovation, it does not readily evolve. When it evolves, it may in some conditions select against independent innovation and lower its frequency, despite it requiring independent innovation in order to operate; at the same time, however, it leads to much faster cultural evolution. These results confirm the role of high-magnitude innovators as keystones, and suggest a novel explanation for low frequency of independent innovation.

scholarly journals The limits of ignorance – financial literacy and the corporate responsibilization to the business of life

2015 ◽  
Vol 19 (2) ◽  
Author(s):  
Erik Højbjerg
Keyword(s):  
Financial Crisis ◽  
Financial Institutions ◽  
Financial Literacy ◽  
Life Skills ◽  
Global Financial Crisis ◽  
Private Enterprise ◽  
Ordinary Citizen ◽  
Individual Citizen ◽  
The Individual

AbstractHow do corporations seek to construe and mobilize responsible consumers by offering products and services, the consumption of which are assumed to transform the individual’s self-relationship along proclaimed ethical and political goals? In the aftermath of the 2008 global financial crisis, increasing the financial literacy of ordinary citizen-consumers has taken a prominent position among regulators and financial institutions alike. The logic seems to be that financially capable individuals will enjoy social and political inclusion as well as an ability to exercise a stronger influence in markets. The article specifically contributes to our understanding of the governmentalization of the present by addressing how - at least in part - the corporate spread of financial literacy educational initiatives can be observed as a particular form of power at-a-distance responsibilizing the consumer. The focus is on the role of private enterprise in governmentalizing the business of life by establishing and mobilizing specific conceptual forms around which the life skills of the entrepreneurial self involves a responsibilization of the individual citizen-consumer.

Part IX Legal and Conduct Risk Management, 30 Lawyers’ Responsibility for the Management of Legal and Conduct Risk

2018 ◽  
Author(s):  
Mccormick Roger ◽  
Stears Chris
Keyword(s):  
Risk Management ◽  
Financial Crisis ◽  
Financial Markets ◽  
Financial Institutions ◽  
Regulatory Regime ◽  
Legal Risk ◽  
Management Techniques ◽  
Recent Financial Crisis

The importance of managing legal risk effectively has increased following the recent financial crisis. As the modern regulatory regime for financial markets (global and domestic) continues to evolve, legal risk management techniques must evolve with it. The pressure to attach more importance to ethics and culture within financial institutions will also have an effect on how lawyers do their job. Rightly or wrongly, the responsibility for checking that proper governance principles are observed is bound to fall on their shoulders to some extent. This chapter discusses the role of lawyers and the legal department in legal risk management, opinions and similar documents, document retention, and clarity of lawyer roles.

scholarly journals High-magnitude innovators as keystone individuals in the evolution of culture

2018 ◽  
Vol 373 (1743) ◽  
pp. 20170053 ◽  
Author(s):  
Michal Arbilly
Keyword(s):  
Cultural Evolution ◽  
Keystone Species ◽  
Low Frequency ◽  
Interdisciplinary Studies ◽  
Theme Issue ◽  
Independent Innovation ◽  
High Magnitude ◽  
Cultural Gaps ◽  
Behavioural Repertoire

Borrowing from the concept of keystone species in ecological food webs, a recent focus in the field of animal behaviour has been keystone individuals: individuals whose impact on population dynamics is disproportionally larger than their frequency in the population. In populations evolving culture, such may be the role of high-magnitude innovators: individuals whose innovations are a major departure from the population's existing behavioural repertoire. Their effect on cultural evolution is twofold: they produce innovations that constitute a ‘cultural leap' and, once copied, their innovations may induce further innovations by conspecifics (socially induced innovations) as they explore the new behaviour themselves. I use computer simulations to study the coevolution of independent innovations, socially induced innovations and innovation magnitude, and show that while socially induced innovation is assumed here to be less costly than independent innovation, it does not readily evolve. When it evolves, it may in some conditions select against independent innovation and lower its frequency, despite it requiring independent innovation in order to operate; at the same time, however, it leads to much faster cultural evolution. These results confirm the role of high-magnitude innovators as keystones, and suggest a novel explanation for the low frequency of independent innovation. This article is part of the theme issue ‘Bridging cultural gaps: interdisciplinary studies in human cultural evolution'.

scholarly journals The Dimensions of Finance Researches in Bangladesh: 1973-2006

2019 ◽  
Author(s):  
Md. Mahmudul Alam ◽  
Abu Rashed
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Financial Institutions ◽  
Research Trend ◽  
Academic Institutions ◽  
Policy Makers ◽  
Look Back ◽  
The World ◽  
Time Periods

The role of growing financial sectors is already marked with good attention of the policy makers, investors, academicians and researchers in Bangladesh. To accelerate and sustain the economic growth, the dimension of finance research is very critical which subsequently results diversified types of researches being conducted continuously in this area. At the same time, assessing the directions of researches is also very important to find out the gap in the research vicinity and to explore uncovered issues keeping in mind that the world of finance is vast and there is little success in Bangladesh in terms of area wise research conducted. Moreover, the financial crisis of the world allows us to think further and look back on the finance researches being conducted and its evolution. This paper is an attempt to analyze the dimensions of financial researches that published in Bangladesh from 1973 to 2006. This study analyzes 549 papers covering from available issues (612 issues out of 750) of 18 journals published by well reputed academic institutions in Bangladesh. This paper categorizes the existing finance publications into different major areas and sub-areas. The category of finance researches is also segmented in three time periods based on the research trend in three decades. Finally the paper highlights the most focused areas and its outcomes, where most of the researches have been conducted but still need to do further study, and unexplored areas, where research works is highly required. This paper will be helpful for the financial institutions, researchers and policy makers.

scholarly journals Pemodelan Binis Sistem dan Teknologi Informasi Pada Lembaga Keuangan Berbasis Urun Dana

2018 ◽  
Vol 3 (2) ◽  
pp. 316-321 ◽  
Author(s):  
Rio Yunanto
Keyword(s):  
Information Technology ◽  
Economic Development ◽  
Financial Institutions ◽  
Support System ◽  
Growing Up ◽  
Remote Areas

Various types of financial institutions, especially for the non bank must be handle carefully because it has the role of strategic in economic development a country. Financial institutions, with the support system of information technology is often abbreviated STI the potential to be growing up fast and able to provide communications access to the remote areas in Indonesia. Crowdfunding is a phenomenon fundrasing that has the potential is huge if managed well. Financial institutions are based on crowdfunding now rely on STI as the backbone of operational technical. Internet make it easier for information a fundraiser across the massive and broad. Its able to give persuasive quickly to anyone and anytime. STI is also able to provide support assistance and supervision of the clients or business enteties received funding. Various parties can be involved in assistance the process of funding so that activities crowdfunding become more transparent and more accountable. Modeling business STI in financial institutions based crowdfunding to be very strategic considering the role of STI a very dominant. Modeling is expected to encourage the use of STI the maximum to support the role of financial institutions based on crowdfunding as one of the economy a country.

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