Flashcards in Economic Approaches II: Investment and corporate risk Deck (27):
What is the Story and Price text about?
It is about how companies in UK demonstrates their CSR through the use of recognised management standards and how they take decisions about risk management
What does Garland's term of responsibilization mean?
It is about promoting a new kind of indirect action, where state-agencies get non-state actors to act.
This confronts the fundamental liberal distinction between market/state / private/public
What happens when non-state actors are mobilised to provide national security a.t. Petersen?
It challenges the idea of the state as the main provider and guarantor of equal protection
What happens to security as a profession after 9/11?
It is increasingly institutionalized
What is often the background of the security manager?
Often comes from government agencies, which is different from rest of board members
Which two ways does Petersen give to govern national security through corporate security?
Neoliberalism, where risk analysis is a technology and neo-republicanism, where resilience is a duty (stresses the common morality)
How does security become risk management in a neoliberal understanding?
1. expand the understanding of risk.
2. Define security as a business opportunity rather than just a cost
What is the goal of neoliberal risk management?
To fuse security and risk, thereby giving the security manager a more legitimate and stronger position in the company
What is the price of neoliberal self-governance?
It hides the political choices involved in turning (national) security into risks
How does neoliberal self-governance work?
It constructs security as an object for economic calculability
What is the goal of neorepublican risk management?
To diminish the contradictions between national and corporate security
What is important in the neorepublican discourse?
Reputation, moral responsibility and civic duties of companies
What is corporate citizenship?
It highlights the resilient society as the concept that can morally unite both national security and business
How is the current approach to risk management as compared to earlier a.c Wakefield?
Why pressure organizations to do risk management?
Not to reduce risks, but to ensure accountability
What is risk management a.t. Wakefield?
It is to imagine worst case scenarios for identified risks, and then identify how the company would manage under these circumstances
What is necessary to do risk management?
Early warning systems, crisis dealing systems, procedures to maintain technological performance etc.
What is Power's book 'organised uncertainty' about?
The abstraction, rationalisation and expansion of risk management that has happened since the mid 90's.
He wants to explore which values and logics is behind the rise of risk management
How does Power see risks?
As constructed - there are no 'real' risks, but on the other hand anything can be a risk depending on how one analyses a danger
What is the difference between risk and uncertainty a.t. Power?
Whether it is expected to be treated as a risk in management systems or not.
He thereby disagrees with Knight, that says the difference is that risks are calculable
Power's distinction is therefore more institutional and managerial
What does Power think of contracts as risk management tolls?
They are risky, as they cannot include everything
What is the risk of institutionalizing risk analysis technologies?
It creates an endogenous risk if everybody uses the same methods
What does Power mean by opportunity society?
Risk management is not only about harm, but also about seeing possibilities.
Further, risk based regulation creates possibilities for those who can prove that they are less of a risk
What is the difference between corporate risk, corporate security and national security?
CR is how the company relates to its risk environment, CS has traditionally been about costs, and NS about threats to the nation
Used to be distinct, but less so now
What is the conventional understanding of political risks?
Related to new investments (but not necessarily), external to the company, related to foreign countries policies and often difficult to calculate
Which two perspectives within CSR?
Shareholder: CSR is to increase profits, and CSR is a risk, who's costs are monitored
Stakeholder: CSR is for the benefit of everyone