Governance and Control of Financial Systems

Gunilla Sundstrm is a global professional and consultant with a passion for Financial Services, Outsourcing/Offshoring and R&D. She has a proven leadership, execution and innovation track record in several areas including outsourcing/offshoring, decision support and analytics for operations, resilience engineering, governance and risk management. She has held leadership positions in a variety of industries including R & D, Financial Services and Global Sourcing. She currently holds the position of Head of Global Sourcing at Deutsche Bank. Gunilla Sundstrm has published more than 60 papers; holds two US Patents and has been awarded IEEE-Systems, Man and Cybernetics' outstanding contributions award. She currently serves on the editorial boards of the International Journal of Human Computer Interaction and the International Journal of Cognition, Technology & Work. She holds a Dr. Phil. degree from the University of Mannheim, Germany. Erik Hollnagel (Ph.D., psychology) is Professor at the University of Southern Denmark, Professor and Industrial Safety Chair at cole des Mines de Paris (France), and Professor Emeritus at University of Linkping (Sweden). Since 1971 he has worked at universities, research centres, and industries in several countries and with problems from several domains, including nuclear power generation, aerospace and aviation, air traffic management, software engineering, healthcare, and land-based traffic. His professional interests include industrial safety, resilience engineering, accident investigation, cognitive systems engineering and cognitive ergonomics. He has published more than 250 papers and authored or edited 17 books, some of the most recent titles being The ETTO Principle (Ashgate, 2009), Resilience Engineering Perspectives: Preparation and Restoration (Ashgate, 2009), Resilience Engineering Perspectives: Remaining Sensitive to the Possibility of Failure (Ashgate, 2008), Resilience Engineering: Concepts and Precepts (Ashgate, 2006), and Barriers and Accident Prevention (Ashgate, 2004). Erik Hollnagel is Editor-in-chief of the series Ashgate Studies in Resilience Engineering and is on the editorial boards of nine international scientific journals.

Contents: Prologue; The turmoil in the financial services system, Gunilla Sundstrm and Erik Hollnagel; Section I Understanding Why: the Need for New Perspectives: Gunilla Sundstrm and Erik Hollnagel; What is the financial services system?, Gunilla Sundstrm and Erik Hollnagel; A dynamic systems modelling perspective, Gunilla Sundstrm and Erik Hollnagel; From the efficient market hypothesis to econophysics, Bill McKelvey and Rossitsa Yalamova. Section II Understanding What: Making Sense of Unpredictable Events and Developments: Erik Hollnagel and Gunilla Sundstrm; The 2007 liquidity crisis: an example of scalability dynamics in action, Bill McKelvey and Rossitsa Yalamova; Taming manias: on the origins, inevitability, prediction and regulation of bubbles and crashes, Jeff Satinover and Didier Sornette; Using power laws and the Hurst exponent to identify stock market trading bubbles, Rossitsa Yalamova and Bill McKelvey. Section III Understanding How: Turning Financial Services Systems into Resilient Systems: Erik Hollnagel and Gunilla Sundstrm; Balancing different modes of uncertainty management in the financial services industry, Gudela Grote; Financial resilience engineering: toward automatic action formulas against risk and reckless endangerment, Bill McKelvey and Rossitsa Yalamova; The ability to regulate, govern and control financial systems, Gunilla Sundstrm and Erik Hollnagel; Epilogue: financial markets and the law of requisite variety, Erik Hollnagel and Gunilla Sundstrm; References; Indexes.