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Analysis of risk and regulation

How to contact us

Centre for Analysis of Risk and Regulation
London School of Economics and Political Science
Houghton Street
London
WC2A 2AE
United Kingdom

 

Email: risk@lse.ac.uk|
Tel: + 44 (0) 20 7955 6577
Fax: + 44 (0) 20 7242 3912

 

 

 
The Centre for Analysis of Risk and Regulation (CARR) is an interdisciplinary research centre whose core intellectual work focuses on the organisational and institutional settings for risk management and regulatory practices.
CARRmagRR27

New Risk&Regulation Issue 27 Magazine: Spring 2014|

This issue is dedicated to a handful of case studies on financial innovation. Topics include the evolution of shadow banking, infinite complexity in options trading, new regulatory models in Basel III, revenue management in transport and tourism, and proposed changes to French bankruptcy law.

 
CARR Seminar|

Professor Oren Perez, Bar-Ilan University
Title: 'Can Experts be Trusted and what can be done about it? Insights from the Biases and Heuristics Literature' 
Date: 14 October 2014
Time: 1.00-2.30pm
Venue: KSW 3.01  

CARR Public Lecture: The Social Conditions for Innovation: Dissonance for Discovery|

On 22 May 2014, Professor Stark discussed the conditions for innovation; analysis of dissonance, including the necessity of a healthy critical social science and humanities to innovation. Professor Stark is a Centennial Professor at CARR and an Arthur Lehman Professor of Sociology & International Affairs at Columbia University. More details can be found here|.

A one d|ay conference to consider the legacy of the British utility regulation model in the UK, the OECD and the industrialising world|, Monday 31 March 2014. Hosted by the Deputy Director of CARR, Professor  Martin Lodge| and founding member of Centre for Competition & Regulatory Policy, Professor Jon Stern| from City University.
MP1

Better Quality Risk Management: The Times 26 March 2014|

As originally seen in ‘Business Risk Strategies’| published by Raconteur Media |in The Times, an interview with Professor Mike Power| who discusses what business and regulators could do better to manage risk.

 
News archive|

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.

Risk-culture-interim-report-FINAL(for-website)

The report was published on 8 November 2012. To read the full report, please click here|.  

 
Please click here| to read the ESRC article titled "Researching risk in financial organisations" from 5 December 2012.
 
Think-piece95_Ashby_et_al_Risk_Culture_20May2013_Page_1
Risk Culture in Financial Organisations Project have published a Thinkpiece for CII on 20 May 2013. To read the Thinkpiece, please click here|.
 
Final-Risk-Culture-Report

Press release - Risk Culture in Financial Organisations publish final report: 30 September 2013|

Joint research from LSE (Professor Mike Power and Dr Tommaso Palermo) and Plymouth University (Dr Simon Ashby) published today dispels ‘myths’ that poor or deviant risk culture in financial institutions is mainly responsible for recent scandals.

The report, Risk Culture in Financial Organisations, says that current debates misleadingly equate risk culture with greater precaution and risk aversion. It challenges the notion that there is a clear distinction between ‘strong’ and ‘weak’ risk cultures.

Professor Mike Power comments, “The risk cultures of financial organisations are full of trade-offs, and how they manage those trade-offs is fundamental. This clearly includes, but is not restricted to, the need to balance risk and return. In addition, we find that ‘good’ risk culture is as much about organisational clarity and confidence in making these trade-offs, as it is about the level of risk taken as such, or indeed about ethics.”

The report also questions the direction of certain financial sector reforms, including the significant focus on issues such as governance, ethics and incentives.

To read the full press release, please click here|.

To final report is available here| and the Executive Summary is available here|.   

 

Project Leaders

Professor Mike Power| (LSE)

Dr Simon Ashby| (Plymouth Business School)

Dr Tommaso Palermo| (LSE)

Sponsors

CII|

CIMA|

ESRC|

Lighthill Risk Network|

Sponsors logos - CIMA, ESRC, CII, LRN
 

 

The Regulators’ Forum is a unique initiative to bring together academics and practitioners in the field of regulation to share insights and lessons regarding contemporary regulatory challenges. Contemporary regulation often takes places within distinct policy domains, with little opportunity to draw on cross-sectoral experiences. CARR’s Regulators’ Forum, supported by LSE’s Knowledge Exchange initiative, seeks to provide for a setting for structured themes about key themes in regulation.

Forum 1
Theme: Inspection and Compliance
What are the challenges of risk-based and responsive enforcement strategies? How do different regulators deal with these challenges, how do they combine different inspection strategies, and what is the impact of austerity on enforcement practices? These were the themes of the first meeting of the Regulators' Forum.

Discussion summary.| 

Forum 2

Theme: Emerging Risks
How problematic are emerging risks for regulators? How can they be identified and communicated? How can emerging risks be incorporated in the day-to-day practices? These were the key questions considered during the meeting of the Regulators’ Forum.

Discussion summary.|


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