Analysis of risk and regulation

Forthcoming CARR Public Seminar

|Risk Communication in Health
Information Needs and Communication Strategies for Public Health Incidents
|Dr Petra Dickmann
London School of Economics and Political Science (LSE)
Date: 29 May 2012
Time: 1pm-2.30pm
Venue: KSW 3.01

New Discussion Papers

|CARR has just published two new Discussion Papers: ‘Mega-Events and Risk Colonisation: Risk Management and the Olympics’, by Will Jennings, and ‘How Firms Translate Regulatory Messages’, by Sharon Gilad. The papers can be downloaded here|.

Risk Culture in Financial Organisations

Although there is widespread consensus that problems of ‘risk culture’ contributed to the financial crisis there is less agreement on what ‘risk culture’ actually is and how it might be managed by financial institutions. 

This project intends to increase our understanding of ‘risk culture’ and effect a knowledge transfer from academia to business by focusing on the ‘cultural drivers’ (e.g. the rate of expansion in operations, approaches to oversight and assurance, level of employee discretion and the framing of risk) which influence the risk taking and control activities of banks and other financial institutions (BOFIs). The intention is not to presume what a ‘good risk culture’ looks like but to investigate the often competing aspects of organisational culture which can drive both risk taking and its mitigation.  We aim for collective knowledge production – working together with CROs and other relevant actors to arrive at a shared view of the cultural factors that drive risk taking and avoiding within BOFIs.

The objectives of the project are as follows:

• To provide a bottom-up view of risk culture, analysing in a practical way the ‘cultural drivers’ in the cultures of BOFIs which are risk-relevant.

• To benchmark results obtained from a representative sample of organisations, providing an overview of common themes, unique aspects and areas of disagreement in the characteristics of BOFI risk cultures.

• To develop a useable ‘risk culture instrument’ that can be used by CROs and others to manage their institutions’ risk cultures in a more explicit manner.

Project Leaders

Professor Mike Power| (LSE)

Dr Simon Ashby| (Plymouth Business School)

Dr Tommaso Palermo| (LSE)

Sponsors

CII|

CIMA|

ESRC|

Lighthill Risk Network|