IDEAS home Printed from https://ideas.repec.org/a/tei/journl/v2y2009i1p51-70.html
   My bibliography  Save this article

The Financial Crisis: Caused by Unpreventable or Organized Failures?

Author

Listed:
  • Anke Müssig

    (Institute for Accounting, Controlling and Auditing, University of St. Gallen, Switzerland)

Abstract

In this paper, I analyze cutaways of the current financial crisis against the background of normal accident theory, high reliability theory, and disaster incubation theory. To avoid future financial crises I recommend reducing pressures to make profit and organizing the global financial markets like high reliability organizations. Furthermore I argue that risk management within organizations must no longer only be a symbolic gesture. The paper’s purpose is to break with the isolated financial view of the crisis’s causes and effects. It is a plea for a new understanding of the financial crisis, transferring the view from the crisis’s impact to its features and causal factors. The study at hand should be regarded as preparatory work for a more interdisciplinary approach to the current crisis and for special branches of science to cooperate

Suggested Citation

  • Anke Müssig, 2009. "The Financial Crisis: Caused by Unpreventable or Organized Failures?," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 2(1), pages 51-70, June.
  • Handle: RePEc:tei:journl:v:2:y:2009:i:1:p:51-70
    as

    Download full text from publisher

    File URL: https://ijbesar.af.duth.gr/docs/volume2_issue1/financial_crisis.pdf
    Download Restriction: no

    File URL: https://ijbesar.af.duth.gr/volume2_issue1.php
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rudolph, Jenny & Hatakenaka, Sachi & Carroll, John S., 2002. "Organizational Learning from Experience in High-Hazard Industries: Problem Investigation as Off-Line Reflective Practice," Working papers 4359-02, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    2. Karlene H. Roberts, 1990. "Some Characteristics of One Type of High Reliability Organization," Organization Science, INFORMS, vol. 1(2), pages 160-176, May.
    3. Karlene H. Roberts & Suzanne K. Stout & Jennifer J. Halpern, 1994. "Decision Dynamics in Two High Reliability Military Organizations," Management Science, INFORMS, vol. 40(5), pages 614-624, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Peter Madsen & Vinit Desai & Karlene Roberts & Daniel Wong, 2006. "Mitigating Hazards Through Continuing Design: The Birth and Evolution of a Pediatric Intensive Care Unit," Organization Science, INFORMS, vol. 17(2), pages 239-248, April.
    2. J. S. Busby & A. M. Collins, 2014. "Organizational Sensemaking About Risk Controls: The Case of Offshore Hydrocarbons Production," Risk Analysis, John Wiley & Sons, vol. 34(9), pages 1738-1752, September.
    3. Ignacio J. Martinez-Moyano & David P. McCaffrey & Rogelio Oliva, 2014. "Drift and Adjustment in Organizational Rule Compliance: Explaining the “Regulatory Pendulum” in Financial Markets," Organization Science, INFORMS, vol. 25(2), pages 321-338, April.
    4. T. Anderson & J. S. Busby & M. Rouncefield, 2020. "Understanding the Ecological Validity of Relying Practice as a Basis for Risk Identification," Risk Analysis, John Wiley & Sons, vol. 40(7), pages 1383-1398, July.
    5. Léna Masson & Julienne Brabet, 2018. "The paradoxes of externalization strategy in a safety critical industry," Post-Print hal-01765294, HAL.
    6. Johannessen, Idar A. & McArthur, Philip W. & Jonassen, Jan R., 2015. "Informal leadership redundancy: Balancing structure and flexibility in subsea operations," Scandinavian Journal of Management, Elsevier, vol. 31(3), pages 409-423.
    7. Sandra Bertezene & David Vallat & Philippe Michel & Jacques Martin, 2023. "Deciding in turmoil: Four University Hospital Centres in the Covid-19," Post-Print hal-04212906, HAL.
    8. Michel Anteby & Curtis K. Chan, 2018. "A Self-Fulfilling Cycle of Coercive Surveillance: Workers’ Invisibility Practices and Managerial Justification," Organization Science, INFORMS, vol. 29(2), pages 247-263, April.
    9. Hazhir Rahmandad & Nelson Repenning, 2016. "Capability erosion dynamics," Strategic Management Journal, Wiley Blackwell, vol. 37(4), pages 649-672, April.
    10. Fetzer, Thiemo & Vanden Eynde, Oliver & Wright, Austin L, 2024. "Team production on the battlefield: Evidence from NATO in Afghanistan," The Warwick Economics Research Paper Series (TWERPS) 1500, University of Warwick, Department of Economics.
    11. Charles Sabel & Gary Herrigel & Peer Hull Kristensen, 2018. "Regulation under uncertainty: The coevolution of industry and regulation," Regulation & Governance, John Wiley & Sons, vol. 12(3), pages 371-394, September.
    12. Daniel Nunan & Marialaura Di Domenico, 2017. "Big Data: A Normal Accident Waiting to Happen?," Journal of Business Ethics, Springer, vol. 145(3), pages 481-491, October.
    13. Benoît Journé, 2005. "Étudier le management de l’imprévu:méthode dynamique d’observation in situ," Revue Finance Contrôle Stratégie, revues.org, vol. 8(4), pages 63-91, December.
    14. Setiadi Umar & Gibson N. Chunwe, 2019. "Advancing environmental productivity: Organizational mindfulness and strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 28(3), pages 447-456, March.
    15. Banerjee, Preeta M. & Mahoney, Joseph T., 2007. "Organization at the Limit: Lessons from the Columbia Disaster," Working Papers 07-0101, University of Illinois at Urbana-Champaign, College of Business.
    16. Zhiang (John) Lin & Xia Zhao & Kiran M. Ismail & Kathleen M. Carley, 2006. "Organizational Design and Restructuring in Response to Crises: Lessons from Computational Modeling and Real-World Cases," Organization Science, INFORMS, vol. 17(5), pages 598-618, October.
    17. Ying‐Siou Lin & Yen‐Chun Lin & Meei‐Fang Lou, 2017. "Concept analysis of safety climate in healthcare providers," Journal of Clinical Nursing, John Wiley & Sons, vol. 26(11-12), pages 1737-1747, June.
    18. Bent Flyvbjerg & Alexander Budzier & Daniel Lunn, 2021. "Regression to the tail: Why the Olympics blow up," Environment and Planning A, , vol. 53(2), pages 233-260, March.
    19. Lampel, Joseph & Bhalla, Ajay & Jha, Pushkar P., 2014. "Does governance confer organisational resilience? Evidence from UK employee owned businesses," European Management Journal, Elsevier, vol. 32(1), pages 66-72.
    20. Vincent Giolito, 2015. "Managing organizational errors: Three theoretical lenses on a bank collapse," Working Papers CEB 15-033, ULB -- Universite Libre de Bruxelles.

    More about this item

    Keywords

    Financial Crisis; Normal Accident Theory; High Reliability Theory; Disaster Incubation Theory;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tei:journl:v:2:y:2009:i:1:p:51-70. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kostas Stergidis (email available below). General contact details of provider: https://edirc.repec.org/data/dbikagr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.