CARR REVIEW Contents

Risk&Regulation

Magazine of the Centre for Analysis of Risk and Regulation No.1 Spring 2001

3 Editorial CARR Co-Directors, Bridget Hutter and Michael Power, welcome readers to Risk and Regulation and set out CARR’s programme. 4 Guest Column Chris Swinson discusses the problems of regulating professions. 5 CARR News CARR has its ESRC launch, makes new appointments and hosts an international conference on the regulation of the public sector. Risk&Regulation: CARR Review 6 CARR Research The BP Complex Risk Programme is launched and Jonathan No 1 Spring 2001 Rosenhead and Tom Horlick-Jones discuss their joint project funded by the programme. Editor: HENRY ROTHSTEIN Editorial Assistant: ABIGAIL WALMSLEY 7 Risk Research Institute The Risk Research Institute holds its first Risk Forum sponsored Enquiries should be addressed to: Centre Administrator by PricewaterhouseCoopers. Centre for Analysis of Risk and Regulation London School of Economics and Political Science 8 CARR Network Houghton Street, London WC2A 2AE CARR sets out to be a national centre and research resource, United Kingdom and hosts its first academic visitors from overseas. Tel: +44 (0)20 7955 6577 Fax: +44 (0)20 7955 6578 9 CARR Seminars Website: http://www.lse.ac.uk/Depts/carr/ David Vogel compares risk regulation in contemporary Europe Email: [email protected] with that in the USA during the 1970s; Fiona Haines discusses Published by the juridification and legitimation crises in late modern capitalist Centre for Analysis of Risk and Regulation democracies; and Tim Forsyth examines conflicting pressures London School of Economics and Political Science on environmental risk management in developing countries. Houghton Street, London WC2A 2AE Copyright in editorial matter and this collection as a whole: 10 Masters Programmes London School of Economics © 2001. Information about the new Deutsche Bank Masters course in Copyright in individual article: ‘Management and Regulation of Risk’ and the Masters courses © Chris Swinson 2001. in ‘Regulation’ and ‘Law and Accountancy’. Chris Swinson has asserted his moral rights. 11 CARR Impact All rights reserved. No part of this publication may be Advice, consultancy and presentations by CARR members reproduced, stored in a retrieval system, or transmitted, in around the world. any form or by any means, without the prior permission in writing of the publisher, nor be issued to the public or 12 CARR in Print circulated in any form of binding or cover other than that in The first CARR publications and other books and papers by which it is published. CARR members. Design and Art Direction: LSE DESIGN UNIT Photography (unless stated): LSE PHOTOGRAPHY 14 CARR Research Planning Printed by: BSC A ten year programme for CARR research. ISSN 1473-6004 15 CARR Staff CARR staff and their expertise.

www.lse.ac.uk/Depts/carr/ CARREDITORIAL

elcome to the first issue of the Michael Peacock Charitable Foundation and followed Risk&Regulation, the magazine of this with further agreements with Deutsche Bank, the Centre for Analysis of Risk and PricewaterhouseCoopers, BP and Aon. The nature and size Regulation (CARR) based at the of this sponsorship has generated a considerable profile for London School of Economics and CARR and we have received many expressions of interest in Political Science. CARR is a multi- supporting the work of the Centre. disciplinaryW research centre with participation from social sci- In addition to the academic research programme we are entists working in law, sociology, political science, account- committed to reaching out to practitioners and other acade- ing, economics, geography and environment and operational mics, and this magazine is part of that strategy. We are build- research. The broad intention is to develop intellectual syn- ing on existing networks such as that established through ergies across disciplines and to pull together the risk man- the practitioner seminar for the MSc Regulation. The agement and regulation research literatures more generally. PricewaterhouseCoopers Risk Forum series, the first of A key perspective of work within the Centre is that regulation which was held in November, will also provide a two-way can be understood as a form of risk management, just as street for the exchange of ideas and the dissemination of risk management within organisations can so often be research results. Indeed, we are confident that the work of understood as a form of self-regulation. So the links between CARR (and the Risk Research Institute within it) will have a risk and regulation are at the very heart of what we do. demonstrable impact on risk management thinking and reg- The intellectual agenda of the Centre is evolving around ulation policy over future years. three broad programmes: Organisations and Risk An important aspect of our work is to develop links with Management is concerned with understanding processes of academics and institutions elsewhere in the UK in order that Bridget Hutter and Michael Power change around risk management practices within organisa- CARR becomes a national research resource. In addition to CARR Co-Directors tions. This complements Business Regulation and a general scheme of visitorships and affiliations, we are build- Corporate Governance which ing specific and substantive research links with other UK uni- focuses on the rule environment versities. Beyond the UK, we are also developing relation- of the organisation, including ships with other centres for research excellence, such as the both voluntary codes of gover- Risk Management and Decision Process Centre at the nance and statute as sources of Wharton School (University of Pennsylvania) and the corporate regulation. The third Regulation Network (REGNET) based at the Australian research programme, the National University in Canberra. This will include a schedule Regulation of Government of high profile visitors from overseas to complement the and Governance focuses on research activity within CARR. the operations of regulatory A further dimension of CARR’s commitment to outreach institutions at the state and involves the dissemination of ideas via a number of related supra-national level. masters and executive teaching programmes. Although These three programmes are CARR as a research centre does not teach, its staff already linked by a number of thematic contribute to the MSc Regulation and MSc Law and interests underlying the com- Accounting, and will also support a new MSc Management parative thrust of our work. and Regulation of Risk which will commence in 2001. The establishment of CARR has taken many people consid- ‘CARR is a multidisciplinary research centre with participation erable time and effort, so it is particularly satisfying to have from social scientists working in law, sociology, political reached this point. 2000 was a science, accounting, economics, geography and environment year of building and we are continuing to refine the infrastruc- and operational research’ ture to support our research efforts. Indeed, as Directors of CARR we have become risk First, we are concerned to document and understand cross- managers ourselves, in which the alignment of independent sectoral variation in the tools and techniques of risk manage- research expertise with the diverse expectations of our ment and regulation. Second, an important focus is the unin- donors is a major and never-ending task. In fact, we believe tended consequences of risk management and regulatory that a perfect and smooth alignment of these interests is practice. We hope to build an understanding and inventory of neither possible nor desirable, since the best academic important side effects and their causes. Third, there is no work will be produced in that awkward but productive intel- doubt that practices of risk management and regulation play lectual space which is intimately connected to practice but a vital role in securing the legitimacy of organisations and in is not of it. constructing them as accountable entities. So research at We welcome you again to Risk&Regulation and hope that CARR will also focus on the normative climate within which you will find this new enterprise as interesting and exciting as practice is shaped. we do. We would welcome any feedback or reaction that All this work will be funded from a unique mix of sources. you might have to the life and work of CARR, the activities of CARR became an ESRC funded research centre in October which can also be explored on our website 2000. Prior to that we secured core funding for a Chair from http://www.lse.ac.uk/Depts/carr/

I Spring 2001 I Risk&Regulation I 3 I GUESTCOLUMN

rom a profession’s point of view, public attention is often unwelcome. Professions do not usually seek it. So that F when one profession or another is regularly pilloried in the media, somewhere there are professional insti- tutes deeply wishing that the media would go away and leave them alone. At present, several professions are having a hard time. Various parts of the medical profession are trying to recover from a series of appalling stories. The teaching profession is presumably hoping to recover now that Chris Woodhead has moved on. The solicitors are struggling to meet their targets for clearing up the backlog of uninvestigated complaints. Regulating Even the actuaries may have some questions to answer after the problems at Equitable Life. In the government’s responses to all of these problems, there is a common thread. Whatever regulatory structure Professions exists or may be created, the reaction is that more rules must be established, and compliance with them must be monitored. Regrettably, the instinct to impose regulation of this sort is There are several drivers for this trend. so‘ strong and urgent that little thought is given to the way in Undoubtedly there is a customer demand for safety and certainty of the sort that which professions will react to it might be provided by sets of rules. ’ Regulations are meant to make the public Regrettably, the instinct to impose reg- think we know one when we see one. It feel better by telling everyone everything ulation of this sort is so strong and urgent seems necessarily bound to be the case whether they understand it or not. In some that little thought is given to the way in that good professionals or firms have cases, there is also a clear desire to which professions will react to it. The something about them which is difficult to demonstrate that professionals are deal- consequence of imposing rules and regu- write down or hard to identify. If it was not ing with all of their customers or clients on lations is often that the self-confidence of the case, then all other professionals or a fair basis (e.g. in the context of the professionals is undermined. firms would have done it. National Health Service). Chris Swinson For example, when detailed regulation As a consequence, the loss of freedom, Doubtless other drivers could be identi- Senior Partner was imposed upon the financial services discretion, and autonomy is expensive fied, but in the end they all suggest that BDO Stoy industry, the rules required that the advi- because it does not work very well. there has been a breakdown in the trust Hayward sor was required to ‘know his customer’. Clearly defined, enforceable rules simply which the public may once have placed Chartered The regulators did not rush to define what cannot capture what it takes to be a in professionals. Accountants ‘knowing your customer’ might mean dynamic firm, an effective hospital or a To take one example, before the 1980’s Chairman of believing that experienced professionals brilliant school. Brilliance is squeezed out teachers had great freedom. Teachers in a CARR Policy would know what it meant. Instead, the of the system. What is more, regulation school had autonomy. The school had Advisory industry asked for more detailed rules to has not proved capable of removing the Committee autonomy within a Local Education be published. Industry argued that if it ‘bad apples’ from any profession. ‘Bad Authority. The LEA had autonomy within was to get in serious trouble, then it apples’ keep their heads down and are the national network of authorities. Such a wanted to know precisely what the regu- not easily removed. system generated a wide variety of lators expected. The industry wanted cer- Politicians cannot at the same time schools and achievements. Some teach- tainty just as much as its customers may demand a highly skilled workforce relying ers and schools undoubtedly used their have done. on its abilities, generating dynamic, efficient freedom productively with world-class Rules affect behaviour. They are firms, schools and hospitals in the face of a results. Other teachers and schools did accompanied by rewards for good behav- rapidly changing environment and insist not use their freedom creatively at all. The iour and penalties for failure. Who can that they do what the regulators say. result of this degree of professional free- blame teachers who ‘teach to test’ to get Better results might be achieved by dom was an enormous variety and range the best position in a league table. allowing greater freedom to the market, of achievement and a system that did not Every new rule may seem like a good eschewing process regulation, concentrat- work. The reaction was increased specifi- idea at the time, but each adds to a sense ing on entry qualifications, making sure cation of the outcomes of the education of paralysis, distortion and cost. The diffi- that unsafe professionals are removed and process so that they were better related to culty is that we do not know what it making professionals provide financial national needs and then specification of means for a school to be a good school, safety nets for customers who suffer from the processes to be used. or an auditor to be a good auditor. Yet we professional failures. © Chris Swinson, 2001

I 4 I Risk&Regulation I Spring 2001 I CARRNEWS Conference News ESRC launch

The Comparative Dimension of of CARR Regulation Inside Government, 13–14 October 2000

ARR hosted its first conference last October on The official support of CARR by the Economic and Social Research Council (ESRC) the theme ‘The Comparative Dimension of was marked by a reception at the LSE on Thursday 12 October. The ESRC have Regulation Inside Government’. The event was committed £2.3m to support CARR research over the next five years. Approximately Cfunded by CARR and the British Academy, and 100 guests from the public and private sectors heard speeches by Professor Anthony attracted speakers from North America, Australia, Japan, Giddens, Director of LSE, Professor John Braithwaite, Business Regulatory Scholar, the Netherlands, Germany, France and the UK. Thirty-two Australian National University and Professor Stephen Wilks, ESRC representative. scholars were brought together from political science, law, Professor Gordon Marshall, ESRC chief executive officer, said: ‘This is a new and sociology and accounting for an intensive examination of exciting initiative which promises to yield some excellent research results.’ the prospects for comparing the nature and development of regulatory functions over the public sector. Professor Christopher Hood presented CARR’s first discussion paper and additionally there were nine presentations and seven separate commentaries. The academic presentations were complemented by presentations from the UK Comptroller and Auditor General, Sir John Bourn, on public sector audit, and from Mike Tomlinson (recently appointed as Her Majesty’s Chief Inspector of Schools) on the regulation of schools. Professor Katsuya Hirose offered a perspective on the place of arms-length oversight in Japanese government. He argued that an earlier style of informal control based on mutuality had partly broken down for the high bureau- cracy. That breakdown had not resulted in increased for- mal oversight, but rather a directionless ‘doughnut’ style. The school education sector had also not followed the UK or Dutch pattern because of its high politicisation, but there were more parallels in the university sector. Professor Guy Peters presented a paper exploring how SALLY FRANCIS SALLY well the idea of regulation in the form of arms-length over- From left: CARR Co-Directors Bridget Hutter and Michael Power, ESRC Chief sight over executive government ‘travelled’ to the US con- Executive Gordon Marshall and CARR Programme Director Robert Baldwin. text. He showed how the different institutional context affected forms of arms-length oversight, but he argued that a trend towards increased arms-length oversight was observable and that the study of the working of arms- CARRNEWSEXTRA length oversight agencies helped to reveal how far (or how little) managerialism had developed in the public sector. Peacock Professor of Risk Central conclusions drawn from discussion were that the changes in public administration mapped out in the UK Management CARR Co-Director, Bridget Hutter, was study by Christopher Hood, Colin Scott and others were of Aon Fellowship in Risk appointed to the Michael Peacock Chair sufficient importance internationally to merit a substantial Management of Risk Management in May 2000. The comparative investigation. Conference participants were Michael Huber was appointed in Michael Peacock Foundation has provided doubtful that the regulation concept, which proved so February 2001 as the Aon Fellow in funding for this Chair for five years. fruitful as the basis for analysis of the UK experience, Risk Management. Aon have generously would ‘travel’ sufficiently well to provide the basis for com- funded this research fellowship for parative research between countries with patterns of pub- three years. lic administration as diverse as those of the United States, Japan and France. For a more substantial project to be New ESRC Appointments viable a more generic concept of control would have to be Henry Rothstein was appointed in developed that could capture the diverse ways in which control over the public sector is exercised. October 2000 as the ESRC Research There was considerable enthusiasm for taking the work Gladstone Professor of Officer for the Business Regulation and forward with further conceptual analysis and more sus- Government Corporate Governance programme. tained country studies. Christopher Hood, Colin Scott and CARR Programme Director, Christopher Martin Lodge was appointed in February Tony Travers will be following this up with other partici- Hood, was appointed Gladstone Professor 2001 as ESRC Senior Research Officer pants with a view to creating a long-term programme of of Government and Fellow of All Souls for the Regulation of Government and study and publication of an edited book. College, Oxford, in January 2001. Governance programme.

I Spring 2001 I Risk&Regulation I 5 I CARRRESEARCH

Organisational Decision Support for the Management of Complex Risk

Jonathan Rosenhead and Tom Horlick-Jones

ome recent significant develop- plex as it progressively moves away from ments in industry thinking about traditional insurance-based cover. the management of risk have Second, the political sensitivity of risk S thrown into sharp relief a range issues has led to increasing pressures on of practical difficulties associated with risk- organisations to manage their risks more related corporate decision-making effectively. And third, a growing number of BP Complex Risk processes. It is increasingly recognised in corporate decisions are now being explic- industry circles that risks to human beings itly included within the ambit of an overall Research Programme and to the physical environment can be risk management strategy, so increasing managed dynamically in ways that can the complexity and scale of the process. both fulfil regulatory requirements and These issues are being addressed by achieve a range of corporate goals. this project, which utilises a transdiscipli- Public and private sector organisations However this approach often entails deci- nary methodology and draws on insights handle a multitude of risks on a day-to-day sion-making processes that involve con- and methods from operational research basis. Political, financial, environmental and siderations concerning technical, financial, and sociology. We will be working closely reputation and other forms of risk. In these with a number of organisations to investi- reputational risks are just some of the risks circumstances a number of different possi- gate the situational specificity of their that have to be balanced. Yet it is surprising ble bases for decision-making – codes existing risk-related practices, and to that there is still so much uncharted water in and standards, good practice, engineering engage with real-world problem situations the study of how organisations handle these judgement, risk analysis, cost-benefit they possess. diverse sources and forms of risk. In an analysis, company values and societal val- This practical engagement will utilise a ues – all have their place, according to the family of ‘low tech’ decision support tools invigorating new development, BP has funded type of decision context in question. In called Problem Structuring Methods a major programme of research within CARR cases featuring high uncertainty and con- (PSMs) which are designed to assist on the theme of complex risk. tested values, engagement with stake- management groups agree the nature The programme is funding two projects in holders is a necessary and important com- and boundaries of problems which they this vital new area. In one project, Andrew ponent of the process. must tackle, and to secure shared com- Gouldson (LSE) will be studying the This development poses a number of mitment to action by means of an extend- operational challenges. How, in practice, ed group ‘conversation’. Ethnographic implications of more open and participatory is it possible to integrate a range of tech- methods are being used to understand risk assessment processes for corporate nical and value-related considerations into problem situations ‘through the eyes’ of governance. His project will focus particularly a given decision process? How is it possi- corporate actors, and we aim to use this on the assessment and management of ble to incorporate otherwise hidden agen- knowledge to design suitable interven- complex environmental risks. The other das into the decision process? How can a tions using PSMs. In practice PSM-based sufficiently transparent process be estab- decision support will take the form of a project is already underway and concerns lished that ensures ‘buy-in’ from a range series of interactive workshops involving decision-making strategies for managing of stakeholder interests? These consider- key corporate actors. complex risks. Professor Jonathan ations have substantial topical relevance The central objective of the project is to Rosenhead (LSE) and Dr Tom Horlick-Jones for strategic management across a broad operationalise the application of PSMs so (Cardiff University) describe their joint range of industrial activities. This problem as to provide practical tools and guidance research below. seems likely to become even more perva- for the support of a range of corporate sit- sive in view of a number of current trends. uations associated with the management First, corporate risk management is of complex risk. becoming increasingly diverse and com-

I 6 I Risk&Regulation I Spring 2001 I CARRRESEARCH

‘The Institute aims to connect academic and practitioner The Risk concerns, and take a leading role in developing Research understanding of key issues of corporate risk management’ Institute Risk Cultures:

The Risk Research Institute is a unique Implications for Corporate Management partnership between CARR and PricewaterhouseCoopers Global Risk Management Solutions to establish an international centre for research in risk management. Funded by a major sponsorship agreement, the Institute will be led by the PricewaterhouseCoopers Chair of Risk Management and supported by a Research Fellow. In addition the Institute will provide grants for specialist research projects. On Thursday November 30th, the Risk The Institute aims to connect academic Research Institute held the first risk forum and practitioner concerns, and take a leading role in developing understanding of at PricewaterhouseCoopers in London. key issues of corporate risk management. The audience of 30 consisted of invited Research will focus on developing social science perspectives on risk that will risk managers and academics. connect with practice via high level exchanges between academia, business and government. Research findings will be Michael Power (Co-Director, CARR) chaired the forum and the disseminated to academic, public and discussion was led by George Gaskell (Professor of Social Psychology, private sector audiences through regular LSE) who drew attention to the ‘two cultures of risk’ in risk management publications, seminars and newsletters. thinking. Drawing on the recent history of the GM foods controversy, In particular, four general research Gaskell argued that, while risk experts, like scientists, lament public themes have been identified for the work ignorance, the public are increasingly sceptical of expert assurances of the Institute: about risks. The impacts and implications of these two cultures are non- trivial for risk management. They are evident in the impasse over the Business strategy processes and risk • testing of applications of gene technology, the commercial food sector • Risk management in the virtual economy seeking competitive advantage at the cost of public anxieties and • Operational risk management and substantial financial losses amongst US and European seed companies. corporate governance The general implications are that more inclusive models for corporate risk assessment are necessary to secure public trust and a sustainable future • Compliance risk management and for new technologies. corporate responses to regulation

The Institute will run an innovative quarterly The practitioner viewpoint was provided by Richard Anderson of risk forum on risk management issues, PricewaterhouseCoopers who questioned the safety of the risk maps bringing together senior figures from currently being used by corporations and how the ‘two culture problem’ can be addressed within them. He also suggested that the traditional axes business, the public sector, regulators and of risk maps – impact and likelihood – need to be refined to reflect issues corporate policy makers. to do with timing and risk definition. Finally, he raised the general question The purpose of the forum is to establish as to whether and how corporations can successfully manage public a regular workshop to discuss new perceptions. research and generate new ideas on risk management thinking. As the first forum Further commentary was provided by Bridget Hutter, (Co-Director of at the end of last November proved, it CARR), who suggested that given the diverse and culturally-relative provides a rare opportunity for ideas to be meanings of risk in the corporate environment, companies would need to exchanged between high level participants design risk management systems which were explicitly outward looking in the corporate risk management field. and sensitive to these differences. There followed an extensive and lively discussion and feedback from participants has been positive and For further information please contact: supportive. Mark Stephen Tel: +44 (0)20 7804 1678 The full version of George Gaskell’s discussion paper and a summary of Email: [email protected] the discussion is available from CARR. http://www.lse.ac.uk/Depts/carr/

I Spring 2001 I Risk&Regulation I 7 I CARRNETWORK A national centre for risk and regulation

‘CARR aims CARR aims to develop as a national centre and research resource. To this to develop end it has adopted a ‘UK Outreach’ ongoing policy. Professor Robert Baldwin directs this aspect of CARR’s work. relationships The aim of outreach is to build Robert Baldwin contacts across the UK to inform the with other development of CARR research agendas; gain feedback research on CARR work; establish collaborative seminars and conferences; assist in the dissemination of results; and institutions. generate a vibrant visitors programme. Links have John Braithwaite speaking at the already been ESRC CARR launch in October 2000 established with a Visitors number of John Braithwaite (Professor, Law Program, Australian departments Tony Prosser Terence Gourvish National University) visited CARR in October 2000. He and contributed to the CARR launch and also to the CARR To assist in these aims Professor Tony Prosser (Glasgow conference on the regulation of government. In addition bodies…’ University) has been appointed as head of Scottish he gave a variety of seminars in the LSE including liaison and Dr Terence Gourvish (LSE) is responsible for departmental and graduate seminars and a Mannheim CARR liaison work in the business history area – paying Centre/British Society of Criminology public lecture. He particular attention to work outside the home counties. visited other UK universities, including Cambridge, Keele, University College London (UCL), and was ple- CARR has an active visitors programme that provides for nary speaker at a conference on restorative justice in visits of varying durations. Visitors will be encouraged to Northern Ireland. He also presented his work to a num- contribute actively to CARR's intellectual life and to offer ber of practitioner groups including Thames Valley work for potential inclusion in the CARR Discussion Police, Inland Revenue and Department of Health. This Paper series. Those interested in applying to become a included fieldwork on aggressive tax planning and col- CARR visitor should contact the CARR office and we will laboration with UCL on comparative nursing home regu- be happy to forward details. lation (to be published in the British Medical Journal). Whilst in Northern Ireland he met with Unionist and A further feature of CARR outreach will be a Republican NGOs, the Royal Ulster Constabulary and dissemination programme – a central feature of which is the Northern Ireland Office. this magazine. The programme will also involve a Discussion Paper series, the making available of CARR Leighton McDonald (Lecturer, Adelaide University Law data archives to UK academics and, amongst other School) spent two months at CARR pursuing research things, electronic information and the website. related to regulation and the rule of law.

CARR aims to develop ongoing relationships with other Richard Johnstone (Lecturer, School of Law, University of research institutions. Links have already been established Queensland, Australia) visited CARR from late October to with a number of departments and bodies such as the mid-December and worked on the ﬁnal stages of a book Scottish Universities Policy Research and Advice on occupational health and safety (OHS) prosecutions in Network (SUPRA). We would welcome approaches from Victoria, Australia. The book will report on an empirical all researchers in the regulation and risk ﬁelds and will be study covering the period 1980-1999 and shows how pleased to expand our circulation lists accordingly. OHS issues are decontextualised and individualised during the prosecution process.

I 8 I Risk&Regulation I Spring 2001 I CARRSEMINARS

CARR runs a regular lunchtime seminar Addressing Environmental Risk in the Developing World: series throughout the academic year Vulnerability and social activism

The Engineer’s Dilemma: Risk Regulation in Contemporary A sociological perspective on Europe: An American perspective juridiﬁcation and regulation Tim Forsyth Department of Geography and Environment, LSE February 2001

Environmental risk management in developing countries is caught between two conflicting pres- David Vogel sures according to Dr Tim Forsyth (LSE), who pre- Fiona Haines University of California sented the third CARR seminar. On the one hand, University of Melbourne Berkeley there are ever more global agreements and codes December 2000 January 2001 of practice that seek efficient and fast solutions to growing environmental problems. On the other Dr Fiona Haines from the Department of Professor David Vogel from the Department of hand, many models of environmental risk under- Criminology, University of Melbourne was one of Political Science and the Haas School of Business pinning those global agreements are biophysically the first speakers at CARR’s regular seminar at the University of California, presented a seminar inaccurate and can cause damage to local liveli- series. Dr Haines subject was the problem of in January comparing contemporary European hoods. Dr Forsyth illustrated this tension using the juridification – the tendency for Acts, Regulations risk regulation with that in the US. Professor Vogel examples of climate change and industrial poi- and Standards in relation to specific fields of work argued that the dynamics of European risk regu- soning in Thailand – showing how the develop- to result in a ‘pile up’ of detailed instructions lation had parallels with that of the US twenty or ment and implementation of risk assessment and which detract from, rather than assist, the perfor- thirty years ago. management techniques were intimately related mance of relevant enterprises and individuals. According to Professor Vogel, through the mid- to their political and institutional context. He con- According to Dr Haines, Teubner and others per- 1980s, health, safety and environmental regula- cluded by exploring different governance mecha- ceive juridification as the product of ‘system cou- tions tended to be stricter in the United States nisms that allow for a more nuanced and socially pling’ problems in the late modern era. As sub- than in Europe. This is no longer the case: a num- flexible basis for understanding the construction systems of law, economics and politics all ber of European environmental and consumer of environmental risk and its management in become more complex, difficulties in ensuring safety standards enacted over the last fifteen developing countries. adequate communication between them increase years are stricter than their American counter- exponentially. The paper began with Teubner’s parts. In a number of critical respects, contempo- diagnosis, but used an extended case-study – of rary regulatory politics and policies in Europe FORTHCOMING LUNCHTIME SEMINARS ‘Peter Smith’, Chief Engineer in a large Australian resemble those of the United States during the general hospital - to modify and extend it. Dr 1960s and 70s: they are highly contentious, Brian Wynne Haines concluded that juridification was also NGOs enjoy substantial political influence, courts Lancaster University symptomatic of what Habermas termed ‘legitima- exercise considerable regulatory oversight and Tuesday, 22nd May 2001 tion crises’ in late modern capitalist democracies. policy makers find themselves under considerable From risk to indeterminacy: political pressure to adopt risk adverse policies, Introducing science to culture in even in the absence of conclusive scientific evi- modern times dence. The precautionary principle both encour- Richard Ashcroft ages greater reliance on science, and the making Imperial College School of of non-scientific judgements. Medicine Professor Vogel put forward a number of expla- Tuesday, 5th June 2001 nations for the emergence of a new European Health care ethics and clinical risk regulatory risk regime each of which had parallels management: What does regulation have to do with morality? with America of the 1970s. These included the emergence of a European civic culture charac- Martin Glaum terised by a strong interest in regulatory issues; a Justus-Liebig-University series of regulatory failures that have undermined Giessen public confidence in existing regulatory institutions Monday,18th June 2001 Regulating risk disclosure in Details of forthcoming seminars and the capacity of governments to protect their Germany – A leap into the unknown can be found on the CARR citizens; and the European Union, which has both website: heightened public scrutiny of both EU and nation- Seminars start at 1pm, al regulatory policies and provided more opportu- Room A347, Old Building, LSE http://www.lse.ac.uk/Depts/carr/ nity for political participation by NGOs.

I Spring 2001 I Risk&Regulation I 9 I MSc Management and and regulatory failure, problems of risk regulation and Masters institutional design and regulatory reform. The litera- Regulation of Risk ture studied is drawn in particular from socio-legal studies, public administration and institutional Programmes economics. Students on the programme have diverse The LSE has received the generous support of backgrounds and come from countries which include Deutsche Bank to develop a graduate level teaching Australia, New Zealand, Japan, Korea, China, the programme in risk management and regulation and to United States, Peru, Brazil, Mexico, Germany, Italy, make a senior academic appointment in the area of Denmark, France, Ireland and the UK. Most have financial risk analysis as the programme’s director. The studied law, politics or economics and many have new MSc Management and Regulation of Risk will wel- substantial experience working in industry, govern- come its first intake of students in October 2001. A ment or law. Recent graduates of the programme are broad based programme, this MSc is an innovative now working in senior regulatory positions in the US addition to graduate teaching at the LSE. Adopting a Securities and Exchange Commission, the World multidisciplinary approach, students will examine theo- Bank, France Telecom, the UK Office of ry and practice in a number of key areas of risk and Telecommunications (OFTEL), the New Zealand gov- regulation. The programme will focus on highly relevant ernment, the Italian telecommunications regulator and topics including financial risk, market risk, corporate the government of Peru. governance, operational risk and environmental risk. This progressive interdisciplinary curriculum is MSc Law and Accounting being co-ordinated by Ronald Anderson who has This unique programme, now in its second year, draws For general information recently been appointed as Professor of Finance at on the strengths of the LSE law and accounting and about any of these courses the School. The MSc Management and Regulation of finance departments to produce an interdisciplinary please contact: Risk will draw upon and support the risk research approach to the study of legal and accounting regula- Student Recruitment Office underway at CARR as well as work on financial risk tion. Each session of the compulsory research led core Tel: +44 (0)20 7955 6613 analysis at the LSE’s Financial Markets Group. A course in Corporate Accountability is conducted by Fax: +44 (0)20 7955 7421 series of practitioner seminars has been integrated both a lawyer and a member of the accounting and Email: [email protected] into the structure of the programme to enable stu- finance department. The course is partially assessed dents to benefit from Deutsche Bank’s wealth of by dissertation and two of last year’s students have experience in risk. Deutsche Bank has also offered to published their dissertations jointly with their supervi- support internships for the students on this pro- sor. In 2001, Deutsche Bank will be sponsoring a prize gramme, giving them the opportunity to apply theory for the best dissertation. Three other courses are cho- in practice. It is intended that the programme will sen from a range of legal and accounting and finance equip its students to assume major positions in risk topics, depending on the background and interests of assessment, management and regulation in such the student. Courses available include company law, professions as management consulting, banking and insolvency, taxation, regulation of financial markets, finance, operations and engineering, both in the pri- aspects of international finance law, employment law, vate and public sectors. financial reporting, management accounting, corporate finance and asset management and securities MSc Regulation and investment analysis. This one year programme The MSc Regulation is an interdisciplinary one year (two years part time) is aimed at qualified lawyers and www.lse.ac.uk/school/recruitment graduate degree taught by academic staff from the accountants, although students from other disciplines law, government, sociology and geography and envi- may be admitted if they have studied related topics. ronment departments of the LSE. The main emphasis Graduates of the course have gone on to a variety of of the programme is to develop a generic and com- careers, including industry, corporate finance, man- parative understanding of the full range of regulatory agement consulting, banking, accounting, the law, processes and alternatives to regulation. Students university teaching and the State Administration of study cutting edge issues such as regulatory overload Taxation in China.

I 10 I Risk&Regulation I Spring 2001 I CARRIMPACT

During the past year Self-employed? Tax Classification of Peter Miller delivered a paper, ‘How and Workers and the Changing Labour Market’. Why Sociology Forgot Accounting’ to the many CARR members Christopher Hood gave oral and written 25th Anniversary Conference of Accounting, evidence on risk and regulation to the Organizations and Society (summer 2000). have been consulted by House of Commons Public Administration Michael Power delivered a paper, ‘The national and international Committee on 10 January 2001. He also New Risk Management’, at the Nationwide contributed a paper (with Henry Rothstein) Building Society (May 2000) and the Institute organisations on a wide on ‘Business Risk Management in of Risk Management annual conference Government’ to the National Audit Office (September 2000) and presented a paper, range of issues report ‘Supporting Innovation: Managing ‘Government as Risk Management’ to a Risk in Government Departments’. Cabinet Office seminar (December 2000). Richard Macve was elected as an Jonathan Rosenhead presented papers Honorary Fellow of the Institute of at the AIRMIC Conference, Birmingham Advice and Actuaries in recognition of the influence of and at the 4th International Conference on his work on insurance company account- Technology Policy and Innovation, Curitiba, Consultancies ing regulation and also continued as a Brazil (August 2000). member of the Accounting Standards Henry Rothstein presented a paper on Board’s (ASB) Academic Panel. Robert Baldwin, Bridget Hutter and ‘Risk Regulation and “Opinion-Responsive Henry Rothstein contributed a commis- Michael Power has been a member of the Government”’, to the ESRC seminar series sioned paper, ‘Risk Regulation, Institute of Chartered Accountants of on the ‘Social Dynamics of Controversy Management and Compliance’, to the England and Wales Environmental Steering and Control in the Biosciences’ hosted by Bristol Royal Infirmary Inquiry. Robert Committee since 1996, and last year joined Brunel University (January 2001). Baldwin wrote a commissioned review, their New Horizons in Financial Reporting Colin Scott presented a paper on ‘Socio-Legal Studies of Regulation’, for the Group. ‘Auditing the Auditors’ to an ESRC confer- Lord Chancellor’s Department and Jonathan Rosenhead was consultant to ence on the future of audit (May 2000), and ‘Regulating Drug Use’ for the Runciman the Venezuelan Ministry of Planning and presented a paper on ‘Regulation Inside Inquiry on the Misuse of Drugs Act 1971. Development on disaster recovery planning. Government’ to the Directors of the He was also a member of the National Henry Rothstein was invited to present Swedish National Audit Office and to Economic Research Associate’s team that research on risk regulation regimes to a Directors General of Swedish government advised the European Commission on specially convened hearing in Paris in departments and agencies in Stockholm interoperability issues in the European rail- December of the Conseil National de (June 2000). He also presented a paper on way system. l’Alimentation, an advisory body to the the ‘The Impact of Autonomous Regulatory Julia Black was a member of the Financial French Government on food safety policy. Agencies on the Public Sector’s Services Authority Handbook Advisory Relationship with the State: The UK Colin Scott acted as a consultant to the Group and was also made a member of the Telecoms Sector as Case Study’ to a con- National Audit Office via the LSE Public DTI Foresight Panel on Financial Services. ference on autonomous agencies organ- Policy Group. ised by the World Bank, Maxwell School Andrew Gouldson was consultant to a and Peruvian government, Syracuse NY project on ‘The Impact of the Eco-Audit (April 2000). Regulation (EMAS) on Innovation in Europe’ funded by the European Presentations Mark Thatcher delivered a paper, Commission DGIII and the Institute for ‘Difficult Issues in Telecommunications Prospective Technological Studies (Spain). and Visits Competition’, to the European Policy The project was undertaken in conjunction Forum conference in Brussels (June 2000), with the Centre for the Exploitation of Vanessa Finch presented a paper to the and presented a paper, ‘Cross-national Science and Technology, Institut für ökolo- Centre for Business Research, Cambridge Linkages and Regulatory Reform in gische Wirtschaftsforschung and the University on the subject of ‘Insolvency, Europe: The Case of Telecommunications’ Fondazione Eni Enrico Mattei. Risk and the Pari Passu Principle of to the American Political Science Distribution’ (May 2000). Association annual meeting, Washington Vanessa Finch and Judith Freedman (September 2000). published on limited liability partnerships- Judith Freedman presented a paper on work that informed the deliberations of the the ‘Taxation of Small Businesses in the Commons Select Committee dealing with UK’ (with M. Gammie) to the Aspects of that topic. Business Tax Reform Colloquium 2000, Cairns, Australia (July 2000). Judith Freedman was a member of a working party of the Company Law Review Christopher Hood gave the Green Steering Group on the needs of small busi- College, Oxford, lecture on ‘A Well nesses and is a member of the Law Society’s Regulated Public Service?’ (January 2001). Company Law Committee. She is also a Bridget Hutter visited the Hugo member of the Tax Law Review Committee Sinzheimer Institute, University of of the Institute of Fiscal Studies and wrote Amsterdam to discuss risk and regulation the TLRC discussion paper, ‘Employed or research (December 2000).

I Spring 2001 I Risk&Regulation I 11 I CARRPRINT

ESRC Launch values. Such negative side effects the public sector. This paper Recent Books by Publication suggest that business risk considers the possibility of CARR Members management models are not a extending that analysis to compare CARR’s launch was marked by panacea for solving what are often the pattern of change in public the publication of a special intractable problems faced by management in the UK with other collection of papers by CARR government. Nevertheless, the paper countries and to focus on members addressing questions concludes that intelligent application alternative ways of regulating of regulation and risk of such models that takes into government. The paper offers an management for the public and account system-wide perspectives, analysis of the ‘regulation private sectors. has the potential to enhance the perspective’ on government and delivery of public services. explores the significance of that UNDERSTANDING perspective for understanding REGULATION IS REGULATION RIGHT? public management reform across Robert Baldwin and Robert Baldwin RISK MANAGEMENT AND BUSINESS REGULATION the world. Finally, the paper turns Martin Cave This paper considers why Bridget Hutter and from theory and interpretation to Oxford: Oxford University Press, regulators tend to be criticised Michael Power the limits of empirical knowledge, 1999 harshly; whether regulators can identifying ‘what we know we don’t Understanding Regulation is an ever be seen to get it right; and This paper (first published in the know’ about comparative public- incisive and fascinating look at the what sort of future they can look Financial Times Mastering Risk sector regulation. contemporary business forward to. Considerable tensions Series, 2000) examines the environment which delves into the exist between regulators’ various complex and subtle interaction of DP2 many and varied issues tasks (regulators, for instance, have government and business in THE EU COMMISSION AND surrounding regulation. This book to act flexibly but also have to offer regulating risks. The state can NATIONAL GOVERNMENTS will appeal to all students and certainty). Nor are regulators always impose rules directly by ‘command- AS PARTNERS: EC REGULATORY EXPANSION IN academics across the social criticised fairly. Critics often fail to and-control’ legislation or can TELECOMMUNICATIONS sciences studying regulatory take on board the intrinsic difficulty encourage internal control systems, Mark Thatcher issues, as well as regulators, of the regulatory challenge. The such as that described by the UK’s consultants and regulated- media distort critical reactions and Turnbull Report. When judging The Commission and national industries staff. often conflate different benchmarks whether a company has complied governments have acted as for regulatory assessment. There is with the rules for risk management, partners in developing EC a need to develop ways of regulators have wide discretion to telecommunications regulation. This convincing the lay public that risks take into account its particular discussion paper identifies six are being regulated acceptably and circumstances and its ‘culture’ of features of that partnership: to this end it is essential to analyse compliance. Moreover, regulators national government participation; the elements that make up and corporate risk managers must incrementalism; advance sign- regulatory regimes and to identify play a dual role – as both the posting and signaling of changes; regulatory responsibilities and enforcers of compliance and frequent compromise; balance and overlaps more clearly. internal advisors to the process of linkage between different regulatory A READER IN risk management. elements; and, national discretion ENVIRONMENTAL LAW over implementation. These Bridget Hutter (Ed.) BUSINESS RISK findings run counter to general Oxford: Oxford University MANAGEMENT IN Press, 1999 GOVERNMENT: PITFALLS CARR models of EU integration and AND POSSIBILITIES Discussion Papers telecommunication studies, both of In recent years the state of the Christopher Hood and which focus on conflict between environment has become an area of Henry Rothstein DP1 the Commission and national increasing concern. This new REGULATING GOVERNMENT governments. Rather, they suggest How applicable are private sector IN A ‘MANAGERIAL AGE’: Reader brings together work from a that whilst the Commission and business risk management models TOWARDS A CROSS- variety of disciplines and theoretical national governments clashed over to the public sector? What can such NATIONAL PERSPECTIVE perspectives, and from an the constitutional allocation of models offer and what are the Christopher Hood and international scholarship. Legal powers, the development of potential pitfalls for government? Colin Scott approaches to environmental substantive policies was marked by This paper, commissioned by the protection, together with alternatives This paper examines one of the cooperation and partnership. The National Audit Office, considers the to law, and supra-national issues, central phenomena at the interface incremental nature of key organisational and strategic are all discussed in depth. between discussion of the telecommunications regulation also differences between managing ‘regulatory state’ and the ‘new highlights the importance of time in risks in the public and private public management state’, namely regulatory expansion. sectors. The paper argues that the regulation of government in a unreflective application of business cross-national perspective. A UK risk management models by study had already demonstrated government can encourage blame the importance for accountability avoidance cultures, inflexible or and control of the public sector of a tokenistic application, and range of inspectors, auditors and undermine other public sector other organisations that oversee

I 12 I Risk&Regulation I Spring 2001 I CARR members can be viewed on the CARR website: http://www.lse.ac.uk/Depts/carr/ CARRPRINT

Telecommunications (OFTEL) and Forthcoming in 2001 The Regulation of supporting interviews, this book Telecommunications explores how telecommunications Regulation and Risk: in Europe regulation works from the inside. Occupational health and safety Mark Thatcher regulation on the railways European Policy Forum, 2000 Bridget Hutter The Audit Implosion: Oxford: Oxford University Press Regulating risk from the inside THE AUDIT SOCIETY: RITUALS The Government of Risk: Michael Power OF VERIFICATION Understanding risk regulation London: Institute of Chartered Michael Power regimes Accountants in England and Oxford: Oxford University Christopher Hood, Henry Rothstein Wales, 2000 Press, 1999 and Robert Baldwin Limited Liability: Large Why is there so much auditing? Oxford: Oxford University Press company theory and small Why are so many people in so REGULATION INSIDE firms GOVERNMENT: WASTE- Corporate Insolvency Law: many different fields being made WATCHERS, QUALITY POLICE Perspectives and principles Judith Freedman formally accountable for what they AND SLEAZE-BUSTERS Vanessa Finch Modern Law Review (63), 2000: pp317–354 do? Does it lead to greater Christopher Hood, Colin Scott, Cambridge: Cambridge University effectiveness or accountability? Oliver James, George Jones Press Isomorphism of National This book is the first systematic and Tony Travers Policies? The ‘Europeanisation’ exploration of audit as a principle of Oxford: Oxford University Press, Other Recent of German competition and social organisation and control. 1999 public procurement law Publications by Martin Lodge Based on two years of CARR Members West European Politics 23 (1), unprecedented access to the inner January 2000: pp89–107 workings of Whitehall, this book A Spectrum of Risks Government versus Private examines the army of inspectors, Jonathan Rosenhead, Ownership of Public Goods auditors, grievance-chasers and Tom Horlick-Jones and N. Chown Tim Besley and Maitreesh Ghatak other bodies devoted to oversight Risk Management Bulletin 3 (10), Quarterly Journal of Economics of public organisations. It documents 2000: pp9–12 (forthcoming) the remarkable growth of such Where Risk Society Meets The Principals and Agents in THE POLITICS OF regulators over the two decades Regulatory State: Exploring TELECOMMUNICATIONS Crisis: Reforms of accounting and explores the way they work in variations in risk regulation and audit at Lloyd’s in 1982-6 Mark Thatcher five different domains. regimes Richard Macve, David Gwilliam and Oxford: Oxford University Christopher Hood, Henry Rothstein, Geoff Meeks Press, 1999 Robert Baldwin, Judith Rees and Accounting History, 2000 This book examines the impacts of Michael Spackman differing institutional structures in Risk Management: An International Explaining Risk Regulation Regimes: Exploring the British and French telecommunica- Journal 1 (1), 1999: pp21–34 ‘minimum feasible response’ tions between 1969 and 1998. Integrating Environment and hypothesis Despite powerful technological and Economy through Ecological Christopher Hood, Henry Rothstein economic pressures, the book Modernisation? An and Michael Spackman with Judith identifies the importance of national assessment of the impact of Rees and Robert Baldwin CRANSTON’S CONSUMERS environmental policy on institutions in determining national AND THE LAW Health, Risk and Society 1 (2), patterns of policy-making, but industrial innovation 1999: pp151–66 Colin Scott and Julia Black Joseph Murphy and points out their lack of impact on London: Butterworths, Andrew Gouldson Governing the Enterprise: economic outcomes. 3rd ed, 2000 Geoforum 31 (1), 2000: pp33–44 The hidden face of accounting Peter Miller This fully revised text provides up to Assessing the Dangerous in T. Porter and D. Ross (eds.), Dogs Act: When does a date information on recent The Cambridge History of Science regulatory law fail? developments in consumer law and Vol. 7: Modern Social and Christopher Hood, Robert Baldwin includes important new material on Behavioural Sciences and Henry Rothstein utilities and financial services Cambridge: Cambridge University Public Law, Summer 2000: regulation. It develops the structure Press, 2000 pp282–305 and analysis of earlier editions, Proceduralising Regulation: Security, Insolvency and Risk: continuing to illuminate the subject, Part I TELECOMS REGULATION: Who pays the price? with the objective of providing a Julia Black CULTURE, CHAOS AND Vanessa Finch contextual and critical account of Oxford Journal of Legal Studies INTERDEPENDENCE INSIDE Modern Law Review (62), 1999: (20), 2000: pp597–614 THE REGULATORY PROCESS the consumer law of England and pp633–670 Wales. The book also discusses Clare Hall, Colin Scott and Geopolitics and the Christopher Hood solutions to consumer law Accountability in the Regulatory State Regulation of Economic Life London: Routledge, 1999 problems adopted in other Colin Scott Bridget Hutter and Nigel Dodd jurisdictions. Using unprecedented access to the Journal of Law and Society (27), Law and Policy 22 (1), 2000: pp1–24 key actors inside the UK Office of 2000: pp38–60

I Spring 2001 I Risk&Regulation I 13 I CARRRESEARCHPLANNING

CARR will organise its work according to a ‘cake’ structure. This involves three discrete thematic programmes (‘slices’) that cover three substantive domains within which regulation and risk management operate. In addition, these thematic programmes will be organised to address three cross-cutting analytical themes (‘layers’). This structure is intended to support the creative analysis of policy fields across institutional domains THEME ONE THEME TWO Organisations and Business Regulation and and organisational types and to Risk Management Corporate Goverance facilitate substantial cross- referencing and co-ordination of THEME THREE each research project. Regulation of Governance In the first years the research and Government programme will be mainly domain-focused, aiming to advance comparative (cross- Tools, techniques, innovation domain and cross-national) and knowledge transfer knowledge. There will also be a secondary emphasis on broader analytic themes that will be Side effects and explored mainly through unanticipated consequences conferences hosted by CARR, workshops and the catalytic contribution of key visitors. Accountability, legitimation As CARR’s research and public expectations programme progresses, the research emphasis will shift to the broad analytic themes (developing projects from the earlier comparative-domain work) with a secondary emphasis on the ‘domain’ work, to be pursued largely through conferences, visitors and freestanding, separately funded research projects. After ten years CARR will have pursued two distinct generations of research, with the second building on the first.

• Institutional approaches to the analysis of risk and reg- Bridging Regulation and ulation from several analytic traditions

Risk Management • The collaborative work done by the LSE regulation group in the 1990s with the related work of other scholars inside and outside LSE

CARR aims to link the activity of institutions convention- • More traditional and well established themes in regula- ally associated with ‘regulation’ (such as inspectors and tion research with emerging issues in risk management auditors) with broader regimes of interacting players and CARR will examine a range of different domains of risk of management more generally. The concept of gover- and regulation, ranging from broad governance issues nance has become popular precisely because it appears relating to the oversight and accountability of public and to span and reconcile images of external directed regula- private officeholders, to specific managerial and regulato- tion and those of self-organisation and best practice ry techniques. But running through these diverse inquiries management. CARR will ‘bridge’ work in regulation and will be a set of analytic questions that have emerged from risk management in several ways, notably by connecting: previous and ongoing work by the LSE regulation group. • Perspectives on, and experience of, regulation from Future editions of Risk&Regulation will present updates Europe, the United States and the rest of the world. and early findings of ongoing CARR research.

I 14 I Risk&Regulation I Spring 2001 I CARRRESEARCHSTAFF

Robert Baldwin regimes cross-nationally and across CARR Programme Director: Business policy domains; Institutional factors in Jonathan Rosenhead Regulation and Corporate Governance shaping regulation and implications for Professor of Operational Research transparency and ‘better regulation’. CARR Director of UK University Liaison Participatory methods for risk Professor of Law management involving multiple Michael Huber stakeholders with distinct perspectives Law; Regulation; Rulemaking; Aon Fellow and interests; Application of participatory Strategies of risk control; Legitimation; methods both intra- and inter- Regulatory processes. Environmental regulation, risk regulation, organisation theories and social theory organisationally, including organisational Tim Besley health and safety issues, and the running of large-scale public events. Director of Suntory and Toyota Bridget Hutter International Centres for Economics CARR Co-Director Henry Rothstein and Related Disciplines (STICERD) CARR Programme Co-Director: ESRC Research Officer Professor of Economics Organisations and Risk Management Comparative analysis of health, safety Public Economics; Development Peacock Professor of Risk and environmental risk regulation Economics; Political Economy. Management regimes cross-nationally and across The sociology of regulation and risk Julia Black policy-domains; Role of public opinion, management; The regulation of the media, interest groups, regulatory Senior Lecturer in Law economic life with particular reference professionals and scientific knowledge Regulatory techniques and processes; to corporate responses to state and in shaping regimes. Interpretive and discourse based non-state forms of regulation. approaches to regulation; Rule making; Colin Scott legitimation; Financial services regulation. Martin Lodge Senior Lecturer in Law ESRC Senior Research Officer Vanessa Finch Regulation of government, Railway regulation in Britain and telecommunications regulation and Senior Lecturer in Law Germany; ‘Europeanisation’ of German regulation of consumer markets; New Corporate insolvency; Corporate competition law; ‘regulatory dimensions of regulation of the public Governance; Directorial Responsibility/ transparency’, and regulatory reform in sector and regulatory innovation. Liability; Creditors, Security and Risk. Jamaica; Comparative regulation and public administration; Government and Mark Thatcher Judith Freedman politics of the EU and of Germany. Lecturer in Public Administration and Professor of Law Public Policy Taxation; Small businesses; Interaction Richard Macve Comparative regulation and public between legal and accounting regulation; Professor of Accounting policy in Europe (particularly Britain, Corporate accountability; Company law. Conceptual framework of financial France, Germany and Italy, and EU); accounting and reporting; Financial Andy Gouldson telecommunications and other utilities; reporting in the insurance industry; Institutional design and independent Lecturer in Geography historical development of accounting; regulatory agencies; New Science, technology, industrial Environmental accounting and reporting; institutionalist, network and principal- development and environment; Interactions between insurance and agent models of policy making. Environmental risk assessment tech- environmental management. niques, and risk management; Corporate To Be Appointed: governance and stakeholder relations. Peter Miller Director of the Deutsche Bank Risk Professor of Management Accounting Terence Gourvish Programme Accounting and advanced Director, Business History Unit ESRC Research Officer: Organisations manufacturing systems; Investment and Risk Management Programme Business and Corporate History in the appraisal and capital budgeting; PricewaterhouseCoopers Fellow in Risk 19th and 20th Centuries; Organisation Accounting and the public sector; Social Management and Privatisation in British Rail since and institutional aspects of accounting. 1973; Brewing Industry since 1914; PricewaterhouseCoopers Chair in Risk Comparative Study of State-owned Michael Power Management Enterprise; Mergers and Industrial Concentration. CARR Co-Director CARR Programme Co-Director: Christopher Hood Organisations and Risk Management CARR Administrative Team CARR Programme Director: Regulation P D Leake Professor of Accounting of Government and Governance Organisations and risk management; David Black Gladstone Professor of Government Role of internal and external auditing in Administrative Secretary and Fellow of All Souls College, Oxford the corporate governance process; Role Louise Newton-Clare of internal control systems in corporate Regulation of public-sector bodies and Centre Administrator links between changes in regulation risk management and regulation; Risk and changes in public management; reporting and communication; Financial Abigail Walmsley

www.lse.ac.uk/Depts/carr/ Comparative analysis of risk regulation accounting and auditing regulation. Administrative Assistant