The Dynamics Of Organizational Collapse: The Case Of Barings Bank (routledge International Studies In Money And Banking)
by Helga Drummond /
2008 / English / PDF
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The collapse of Barings’ Bank was a commercial catastrophe that
resonated worldwide, showing what kind of secrets can lie behind
an apparently successful organization. Following Nick
Leeson’s arrest and subsequent conviction for fraud, investment
banks anxiously reviewed their risk management controls to make
sure that it could never happen again.
The collapse of Barings’ Bank was a commercial catastrophe that
resonated worldwide, showing what kind of secrets can lie behind
an apparently successful organization. Following Nick
Leeson’s arrest and subsequent conviction for fraud, investment
banks anxiously reviewed their risk management controls to make
sure that it could never happen again.
Helga Drummond’s exploration is conducted against a backdrop of
social and psychological theories of decision error that seeks to
go beyond media style accusations of greed and
incompetence. She challenges the myth that Barings ‘must
have known’ that mischief was afoot. The book offers
lessons for all organizations as it shows how easily managers can
end up living in a world of fantasy believing that everything is
under control when the precise opposite may be true. It is
not risk and uncertainty that should worry organizations,
concludes Drummond, but what they are most sure
of.
Helga Drummond’s exploration is conducted against a backdrop of
social and psychological theories of decision error that seeks to
go beyond media style accusations of greed and
incompetence. She challenges the myth that Barings ‘must
have known’ that mischief was afoot. The book offers
lessons for all organizations as it shows how easily managers can
end up living in a world of fantasy believing that everything is
under control when the precise opposite may be true. It is
not risk and uncertainty that should worry organizations,
concludes Drummond, but what they are most sure
of.
The collapse of Barings Bank had international ramifications, and
this scholarly analysis will have an international audience as a
result. The book will be of great interest to all those
interested in social psychology, the application of psychology in
management theory, sociology, and organizational behaviour. It is
also suitable as recommended reading for a management or
organization behaviour course.
The collapse of Barings Bank had international ramifications, and
this scholarly analysis will have an international audience as a
result. The book will be of great interest to all those
interested in social psychology, the application of psychology in
management theory, sociology, and organizational behaviour. It is
also suitable as recommended reading for a management or
organization behaviour course.
