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Book

Governance and Control of Financial Systems

Book

Governance and Control of Financial Systems

DOI link for Governance and Control of Financial Systems

Governance and Control of Financial Systems book

A Resilience Engineering Perspective

Governance and Control of Financial Systems

DOI link for Governance and Control of Financial Systems

Governance and Control of Financial Systems book

A Resilience Engineering Perspective
Edited ByGunilla SundstrÖm, Erik Hollnagel
Edition 1st Edition
First Published 2011
eBook Published 12 June 2017
Pub. Location London
Imprint CRC Press
DOI https://doi.org/10.1201/9781315585444
Pages 216
eBook ISBN 9781315585444
Subjects Economics, Finance, Business & Industry, Engineering & Technology
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SundstrÖm, G., & Hollnagel, E. (Eds.). (2011). Governance and Control of Financial Systems: A Resilience Engineering Perspective (1st ed.). Routledge. https://doi.org/10.1201/9781315585444

ABSTRACT

The recent financial crisis has made it paramount for the financial services industry to find new perspectives to look at their industry and, most importantly, to gain a better understanding of how the global financial system can be made less vulnerable and more resilient. The primary objective of this book is to illustrate how the safety science of Resilience Engineering can help to gain a better understanding of what the financial services system is and how to improve governance and control of financial services systems by leveraging some of its key concepts. Resilience is the intrinsic ability of a system to adjust its functioning prior to, during, or following changes and disturbances, so that it can sustain required operations under both expected and unexpected conditions. This definition is focused on the ability to function, rather than just to be impervious to failure, and thereby bridges the traditional conflict between productivity and safety. The core concept of the book is that the behaviour of the financial services system is the result of the tight couplings among the humans, organizations and technologies that are necessary to provide complex financial functions such as the transfer of economic resources. It is a consequence of this perspective that the risks associated with these systems cannot be understood without considering the nature of these tight couplings. Adopting this perspective, the book is designed to provide some answers to the following key questions about the financial crisis: - What actually happened? - Why and how did it happen? - Could something similar happen again? How can we see that in time and how can we control it? - How can sustainable recovery of the global financial system be established? How can its resilience be improved?

TABLE OF CONTENTS

chapter |6 pages

The Turmoil in the Financial Services System

ByGunilla Sundström, Erik Hollnagel

part |4 pages

Understanding Why

chapter |6 pages

What is the Financial Services System?

ByGunilla Sundström, Erik Hollnagel

chapter |10 pages

A Dynamic Systems Modelling Perspective

ByGunilla Sundström, Erik Hollnagel

chapter |10 pages

From the Efficient Market Hypothesis to Econophysics

ByBill McKelvey, Rossitsa Yalamova

part |4 pages

Understanding What

chapter |14 pages

The 2007 Liquidity Crisis

An Example of Scalability Dynamics in Action
ByBill McKelvey, Rossitsa Yalamova

chapter |30 pages

Taming Manias

On the Origins, Inevitability, Prediction and Regulation of Bubbles and Crashes
ByJeff Satinover, Didier Sornette

chapter |22 pages

Using Power Laws and the Hurst Exponent to Identify Stock Market Trading Bubbles

ByRossitsa Yalamova, Bill McKelvey

part |4 pages

Understanding How

chapter |22 pages

Balancing Different Modes of Uncertainty Management in the Financial Services Industry

ByGudela Grote

chapter |16 pages

Financial Resilience Engineering

Toward Automatic Action Formulas against Risk and Reckless Endangerment
ByBill McKelvey, Rossitsa Yalamova

chapter |16 pages

The Ability to Regulate, Govern and Control Financial Services Systems

ByGunilla Sundström, Erik Hollnagel

chapter |4 pages

Epilogue

Financial Markets and the Law of Requisite Variety
ByErik Hollnagel, Gunilla Sundström
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