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The ‘Get Out of Jail Card’: The Immunity Risk Provides Financial Markets and Regulators from the Consequences of Their Mistakes

  • Bartholomew Paudyn
Chapter

Abstract

Despite its history of triggering major mistakes, so much dubious financial risk management remains taken for granted and promoted by markets and regulators. As evermore sophisticated financial processes of operationalising and commodifying an indeterminate future subscribe to a false dichotomy between (quantitative) risk and (qualitative) uncertainty, this chapter problematises how this approach aggravates the asymmetric relationship between private, techno-scientific epistocracy and public democracy. Conventional risk management is analysed through the categories of market/systematic, operational/business and credit risk to reveal their distortions and mistakes. Notwithstanding its repetitious failures, the performativity of risk management/discourse creates and legitimises the conditions and subjectivities that validate its continued utility and normative authority. Immunising market entities from serious public contestation and reform, this depoliticises the constitution of authoritative knowledge.

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Bartholomew Paudyn
    • 1
  1. 1.London School of Economics and Political ScienceLondonUK

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