Author Vit, Gregory B
Title The Risk in Risk Management : Financial Organizations and the Problem of Conformity
Imprint London : Taylor & Francis Group, 2013
book jacket
Descript 1 online resource (156 pages)
text txt rdacontent
computer c rdamedia
online resource cr rdacarrier
Note Cover -- Half Title -- Title Page -- Copyright Page -- Dedication -- Table of Contents -- Foreword -- Acknowledgments -- 1. The Problem of Conformity in Financial Organizations -- Retrospective and Prospective Explanations -- The Override of Numbers: A Dynamic View -- Two Events: Social Override of Numbers and Crash -- Cheerleaders and Models -- 2. The Holistic Risk Management Model (HRMM): Understanding Multiple Logics: Economic, Social and Ideological -- Alternative Risk Management Models -- Conclusion -- 3. Institutional Risk Management: Case 1: The Canadian Banking Paradigm -- Chapter Summary -- Financial Service Industry Mismanagement: Institutionalization and Conformist Strategy -- The Institutional Fortress Model of Mismanagement -- The Canadian Banking Institutional Fortress: A Financial Services Industry Application -- Further Defenses: Institutional Arrangements and Norms Within the Canadian Banking Industry -- The Canadian Bankers' Association -- Favorable Legislation -- Favorable Informal Norms -- Implications for Financial Services Industry Mismanagement -- External Factors -- Internal Factors -- Conclusion -- 4. Contrarian Risk Management and Fraud: Case 2: The Parmalat Fraud -- Chapter Summary -- Multiple Logics of Conformity and Contrarianism: The Problem with Investment Banks and Bankers -- The Problem of Conformity -- Paramalat: "Collective Madness of Banks" -- Common Appreciative Systems Within Investment Banks -- Institutional Theory: Organizational Field and Appreciative System Conformity -- Configuration Theory: Configurations and Appreciative System Conformity -- Financial Mania Theory: Conformity within the Bubble Phase of a Financial Mania -- Enfolding Financial Mania Theory into Institutional and Configurational Logics -- Conclusion -- 5. Evolutionary Risk Management: Case 3: The National Australia Bank Fraud
Chapter Summary -- Introduction -- The Eco-logical View -- The Socio-logical View -- The Ideo-logical View -- Organizational Conformity and Contrarianism: An Appreciative System of Eco-logics, Socio-logics and Ideo-logics -- Contrarian and Conformist Appreciative Systems and Risk -- Implications for Governance Theorists and Practitioners -- 6. Evolutionary Risk Management: Case 4: The Gaspesia Project Fiasco -- Chapter Summary -- The Gaspesia Project Failure -- Prior Research on Project Escalation of Commitment -- Method -- Historical Background: The Chandler Gaspe Mill, Quebec, Canada -- The Gaspesia Mega-project Mega-failure -- The Three Logics -- Rational Risk Management -- Eco-logic Deviation No. 1: No Arms-Length Deep-Pocketed Private Sector Project Sponsor(s) -- Eco-logic Deviation No. 2: Unproven Technology -- Eco-logic Deviation No. 3: Midstream Change of Project Scope and Project Engineers -- Evolutionary Risk Management -- Institutional Risk Management -- Judicious Risk Management -- Discussion -- Conclusion -- 7. Contrarian Risk Management: Case 5: The UBS Sub-prime Meltdown and Case 6: The Société Générale Fraud -- Chapter Summary -- The UBS and Société Générale Cases -- UBS -- Société Générale -- Multiple Logics -- Economic Logic Failure at UBS and SocGen -- UBS -- Société Générale -- Risk Management and Social Structure -- Bubble Trouble and Theory -- 8. Conclusions Regarding the Risk in Risk Management -- The Holistic Risk Management Model -- Forecasting Conformity -- The All-Pervasive Conformist and Prescriptive Risk Management Model -- Making Implicit Risk Management Model Assumptions Explicit -- An Alternative Approach: Holistic Risk Management -- This Book: De-freezing and Describing Prescription -- Re-freezing: Prescribing Description -- Notes -- Works Cited -- Index
Banks take very large risks by consistently herding in the same perilous directions while believing they are safe and unique. This book presents a risk management framework to understand conformity and deviance within investment banks and other large organizations. It suggests that some groups understand the dynamics of this conformity to their advantage. This requires a deeper understanding of the risk in risk management. Fraudsters can game the system to their advantage legally and illegally; therefore risk managers must understand the interplay of multiple logics in order to govern and manage risk. Featuring short illustrative cases of massive risk mismanagement, this book walks the reader through four risk management perspectives (economic, institutional, evolutionary and contrarian) that explain why and how economic rationality is overridden by social forces. By understanding conformity and deviance, groups within organizations will be better equipped to manage risk and go against the tides of conformity to their advantage
Description based on publisher supplied metadata and other sources
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2020. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries
Link Print version: Vit, Gregory B. The Risk in Risk Management : Financial Organizations and the Problem of Conformity London : Taylor & Francis Group,c2013 9780415509848
Subject Financial institutions - Risk management
Electronic books