Economic Approaches II: Investment and corporate risk

Question 1

What is the Story and Price text about?

Answer 1

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

Question 2

What does Garland’s term of responsibilization mean?

Answer 2

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

Question 3

What happens when non-state actors are mobilised to provide national security a.t. Petersen?

Answer 3

It challenges the idea of the state as the main provider and guarantor of equal protection

Question 4

What happens to security as a profession after 9/11?

Answer 4

It is increasingly institutionalized

Question 5

What is often the background of the security manager?

Answer 5

Often comes from government agencies, which is different from rest of board members

Question 6

Which two ways does Petersen give to govern national security through corporate security?

Answer 6

Neoliberalism, where risk analysis is a technology and neo-republicanism, where resilience is a duty (stresses the common morality)

Question 7

How does security become risk management in a neoliberal understanding?

Answer 7

1. expand the understanding of risk.

2. Define security as a business opportunity rather than just a cost

Question 8

What is the goal of neoliberal risk management?

Answer 8

To fuse security and risk, thereby giving the security manager a more legitimate and stronger position in the company

Question 9

What is the price of neoliberal self-governance?

Answer 9

It hides the political choices involved in turning (national) security into risks

Question 10

How does neoliberal self-governance work?

Answer 10

It constructs security as an object for economic calculability

Question 11

What is the goal of neorepublican risk management?

Answer 11

To diminish the contradictions between national and corporate security

Question 12

What is important in the neorepublican discourse?

Answer 12

Reputation, moral responsibility and civic duties of companies

Question 13

What is corporate citizenship?

Answer 13

It highlights the resilient society as the concept that can morally unite both national security and business

Question 14

How is the current approach to risk management as compared to earlier a.c Wakefield?

Answer 14

More holistic

2014

Question 15

Why pressure organizations to do risk management?

Answer 15

Not to reduce risks, but to ensure accountability

Question 16

What is risk management a.t. Wakefield?

Answer 16

It is to imagine worst case scenarios for identified risks, and then identify how the company would manage under these circumstances

Question 17

What is necessary to do risk management?

Answer 17

Early warning systems, crisis dealing systems, procedures to maintain technological performance etc.

Question 18

What is Power’s book ‘organised uncertainty’ about?

Answer 18

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

Question 19

How does Power see risks?

Answer 19

As constructed - there are no ‘real’ risks, but on the other hand anything can be a risk depending on how one analyses a danger

Question 20

What is the difference between risk and uncertainty a.t. Power?

Answer 20

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

Question 21

What does Power think of contracts as risk management tolls?

Answer 21

They are risky, as they cannot include everything

Question 22

What is the risk of institutionalizing risk analysis technologies?

Answer 22

It creates an endogenous risk if everybody uses the same methods

Question 23

What does Power mean by opportunity society?

Answer 23

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

Question 24

What is the difference between corporate risk, corporate security and national security?

Answer 24

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

Question 25

What is the conventional understanding of political risks?

Answer 25

Related to new investments (but not necessarily), external to the company, related to foreign countries policies and often difficult to calculate

Question 26

Which two perspectives within CSR?

Answer 26

Shareholder: CSR is to increase profits, and CSR is a risk, who’s costs are monitored
Stakeholder: CSR is for the benefit of everyone

Question 27

What is the difference between safety and security?

Answer 27

Safety issues are controllable and internal (normal risks)

Security issues are uncontrollable and derives from external events (non-normal risks)