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| :::(i) Don’t cleave to the organisational structure much less the firm’s own division of responsibility for risk management, which is based on stables from which horses have already bolted<br> | | :::(i) Don’t cleave to the organisational structure much less the firm’s own division of responsibility for risk management, which is based on stables from which horses have already bolted<br> |
| :::(ii) Therefore susceptible to present in different areas of risk management – the same risk might be partly legal, partly credit, partly market risk. Each in isolation may be containable, but combined effect less so<br> | | :::(ii) Therefore susceptible to present in different areas of risk management – the same risk might be partly legal, partly credit, partly market risk. Each in isolation may be containable, but combined effect less so<br> |
| ===The firm as a a bulwark against the vicissitudes of the market===
| | *{{risk|Firm}} |
| :::(i) Humans devote much of their energy in mitigating the conditions of the free market. <br>
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| ::::(1) This is our evolutionary advantage. We are social, hierarchical, political animals. <br>
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| ::::(2) We self-organise into anti-competitive associations – call them cartels - of all kinds:<br>
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| :::::(a) Families <br>
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| :::::(b) Clubs <br>
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| :::::(c) Firms <br>
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| :::::(d) Parties <br>
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| :::::(e) Governments <br>
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| :::(ii) These cartels are not run on laissez faire lines. That would defeat their very purpose. They are intended to mitigate against the horrors of the [[Hobbes]]ian world.<br>
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| :::(iii) That is to say, the exact point of human organisation at any level is to undermine market equality, not to promote it.<br>
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| :::(iv) At the highest level there is a free market, but it operates between firms<br>
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| :(b) As with any dynamic system it survives and thrives courtesy of tensions. here the tensions are between:<br>
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| :::(i) Government (cartel) and market (nature) <br>
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| :::(ii) market (nature) and Firm (cartel) <br>
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| :::(iii) firm (cartel) and Individual (nature)<br>
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| :(c) Somewhere within these tensions – in the breakdown between [[nomological machine]]s, we find the phenomenon – maybe phenomena – of nonsense jobs. <br>
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| ==={{risk|Government}}=== | | ==={{risk|Government}}=== |
| ===Form over substance=== | | ===Form over substance=== |