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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), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 2(1), pages 51-70, June.
    • Handle: RePEc:tei:journl:v:2:y:2009:i:1:p:51-70
    as

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    References listed on IDEAS

    as
    1. Karlene H. Roberts, 1990. "Some Characteristics of One Type of High Reliability Organization," Organization Science, INFORMS, vol. 1(2), pages 160-176, May.
    2. 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.
    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.
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    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

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