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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
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.

Forthcoming Seminars|

Professor Moshe Maor, Jerusalem University

Title: Risk and Policy Underreaction, 
Date: 29 May 2014, Venue: Graham Wallace Room, Time 6.00 -7.00pm

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.

Walking the Walk of Risk: The Times 26 March 2014|

An interview with Professor Mike Power| who discusses what businesses and regulators could do better to manage risk.

New publication by Carl Macrae (CARR Research Associate) - Close Calls: Managing Risk and Resilience in Airline Flight Safety

This book is about the practical work that transforms moments of risk into sources of resilience. It specifically examines the world of airline flight safety investigators, whose job it is to oversee one of the most technologically advanced, one of the safest, but also one of the least forgiving operational environments that exist: commercial air transport. It is a must-read for all those who seek to understand and improve the oversight, analysis and management of risk and safety in complex organisations.


New Edition of Risk&Regulation Magazine|

Issue 26 is dedicated to rethinking the concept of crisis in the social sciences.


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.


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.
Risk Culture in Financial Organisations Project have published a Thinkpiece for CII on 20 May 2013. To read the Thinkpiece, please click here|.

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)





Lighthill Risk Network|

Sponsors logos - CIMA, ESRC, CII, LRN