FSA:: Lord Turner’s "paradise" lost


I’ve never met the man but I like the cut of his jib. Perhaps it is the novelty of someone in high (financial) office admitting what his peers feel they cannot…even though, with brief explanation, a child could differentiate good guys from bad!

Lord Adair Turner, the outgoing chairman of the Financial Services Authority and a candidate for Bank of England governor, said last night the FSA had spent its first eight years in a “fool’s paradise” of delusion about financial risk.

via FSA was in fool’s paradise, admits Turner | Herald Scotland.

So the problem is pretty well framed and, dare I say, understood. But WHO IS PREPARED TO LISTEN TO POTENTIAL SOLUTIONS OF THE VARIETY ADVOCATED ANDY HALDANE AT BY BANK OF ENGLAND?

General ignorance:: accident or design?


The PROFESSIONAL-NOVICE DIVIDE is something that I have touched upon before, when dealing with “Hierarchies of Understanding” and “The difference between knowledge and understanding”. But, from the evidence of what I have seen in my own industry [insurance] – like wider Society – the gap between the haves and the have-nots, is, if not widening, then certainly not closing! This isn’t only detrimental to current stakeholders and shareholders…

  • job satisfaction
  • employee retention
  • effectiveness and efficiency
  • errors and omissions
  • management and performance
  • governance and compliance
  • profitability
  • resilience and sustainability

…but to those that follow.

I’m sure that there are those conspiracy theorists who would suggest that this is no accident. But I’m not so sure. Although I could be easily persuaded that leaders of the prevailing culture – some of whom view technology, like financial rewards, only in terms of what short term benefits it brings them and their business – still view humans and technology within organisations as separate entities.

How can they be? They are interdependent components in the processes of a business system that has been created to perform a range of functions from which the organisation generates revenue, the means to sustain the enterprise and (hopefully) profit.

This kind of thinking is holding many organisations back!

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