The role of rules-based compliance systems in the new EU regulatory landscape: perspectives of institutional change and agency

The financial crisis of 2007-2009 and the subsequent reaction of the G20 have created a new global regulatory landscape. Within the EU, change of regulatory institutions is ongoing. The research objective of this study is to understand how institutional changes to the EU regulatory landscape may affect corresponding institutionalized operational practices within financial organizations and to understand the role of agency within this process. Our motivation is to provide insight into these changes from an operational management perspective, as well as to test Thelen and Mahoney?s (2010) modes of institutional change. Consequently, the study researched implementations of an Investment Management System with a rules-based compliance module within financial organizations. The research consulted compliance and risk managers, as well as systems experts. The study suggests that prescriptive regulations are likely to create isomorphic configurations of rules-based compliance systems, which consequently will enable the institutionalization of associated compliance practices. The study reveals the ability of some agents within financial organizations to control the impact of regulatory institutions, not directly, but through the systems and processes they adopt to meet requirements. Furthermore, the research highlights the boundaries and relationships between each mode of change as future avenues of research.

Parameterization of contrails in the UK Met Office Climate Model

Persistent contrails are believed to currently have a relatively small but significant positive radiative forcing on climate. With air travel predicted to continue its rapid growth over the coming years, the contrail warming effect on climate is expected to increase. Nevertheless, there remains a high level of uncertainty in the current estimates of contrail radiative forcing. Contrail formation depends mostly on the aircraft flying in cold and moist enough air masses. Most studies to date have relied on simple parameterizations using averaged meteorological conditions. In this paper we take into account the short‐term variability in background cloudiness by developing an on‐line contrail parameterization for the UK Met Office climate model. With this parameterization, we estimate that for the air traffic of year 2002 the global mean annual linear contrail coverage was approximately 0.11%. Assuming a global mean contrail optical depth of 0.2 or smaller and assuming hexagonal ice crystals, the corresponding contrail radiative forcing was calculated to be less than 10 mW m−2 in all‐sky conditions. We find that the natural cloud masking effect on contrails may be significantly higher than previously believed. This new result is explained by the fact that contrails seem to preferentially form in cloudy conditions, which ameliorates their overall climate impact by approximately 40%.

Building post crisis watchtowers: investment management Systems and new institutional logics for regulatory compliance

The financial crisis of 2007-2009 has precipitated large scale regulatory change. Tight deadlines for implementation require organizations to start working on remediation projects before final drafts of regulations are crystalized. Firms are faced with engaging in complex and costly change management programs at a time when profits are diminished. As a consequence of these factors, pre-crisis logics for organizing compliance practices are being questioned and new approaches introduced. Our study explores the use of Investment Management Systems (IMS) in facilitating compliance arrangements. Our motivation is to understand the new logics and the part played by IMS in supporting these approaches. The study adopts an institutional logics perspective to explore the use of such systems at eight financial organizations. The study found new logics for organizing compliance include consolidation, centralization, harmonization and consistency and that the IMS plays an important role in supporting and enabling related activities.

How Islamic is al-Qaeda? The politics of Pan-Islam and the challenge of modernisation

This article investigates the contested ideology of al-Qaeda through an analysis of Osama bin Ladin’s writings and public statements issued between 1994 and 2011, set in relation to the development of Islamic thought and changing socio-political realities in the late nineteenth and twentieth centuries. Challenging popular conceptions of Wahhabism and the “Salafi jihad”, it reveals an idealistic, Pan-Islamic sentiment at the core of his messages that is not based on the main schools of Islamic theology, but is the result of a crisis of meaning of Islam in the modern world. Both before and after the death of al-Qaeda’s iconic leader, the continuing process of religious, political and intellectual fragmentation of the Muslim world has led to bin Ladin’s vision for unity being replaced by local factions and individuals pursuing their own agendas in the name of al-Qaeda and Islam.

From Hippocrates to commodities: three models of NHS governance

A series of inquiries and reports suggest considerable failings in the care provided to some patients in the NHS. Although the Bristol Inquiry report of 2001 led to the creation of many new regulatory bodies to supervise the NHS, they have never enjoyed consistent support from government and the Mid Staffordshire Inquiry in 2013 suggests they made little difference. Why do some parts of the NHS disregard patients’ interests and how we should we respond to the challenge? The following discusses the evolution of approaches to NHS governance through the Hippocratic, Managerial and Commercial models, and assesses their risks and benefits. Apart from the ethical imperative, the need for effective governance is driven both by the growth in information available to the public and the resources wasted by ineffective systems of care. Appropriate solutions depend on an understanding of the perverse incentives inherent in each model and the need for greater sensitivity to the voices of patients and the public.

Institutional pressures on financial services firms: the role of information systems in regulatory compliance

The financial crisis of 2008 led to new international regulatory controls for the governance, risk and compliance of financial services firms. Information systems play a critical role here as political, functional and social pressures may lead to the deinstitutionalization of existing structures, processes and practices. This research examines how an investment management system is introduced by a leading IT vendor across eight client sites in the post-crisis era. Using institutional theory, it examines changes in working practices occurring at the environmental and organizational levels and the ways in which technological interventions are used to apply disciplinary effects in order to prevent inappropriate behaviors. The results extend the constructs of deinstitutionalization and identify empirical predictors for the deinstitutionalization of compliance and trading practices within financial organizations.

Breaching the social contract: crises of democratic representation and patterns of extreme right party support

Why has the extreme right Greek Golden Dawn, a party with clear links to fascism experienced a rise defying all theories that claim that such a party is unlikely to win in post-WWII Europe? And, if we accept that economic crisis is an explanation for this, why has such a phenomenon not occurred in other countries that have similar conducive conditions, such as Portugal and Spain? This article addresses this puzzle by (a) carrying out a controlled comparison of Greece, Portugal and Spain and (b) showing that the rise of the extreme right is not a question of intensity of economic crisis. Rather it is the nature of the crisis, i.e. economic versus overall crisis of democratic representation that facilitates the rise of the extreme right. We argue that extreme right parties are more likely to experience an increase in their support when economic crisis culminates into an overall crisis of democratic representation. Economic crisis is likely to become a political crisis when severe issues of governability impact upon the ability of the state to fulfil its social contract obligations. This breach of the social contract is accompanied by declining levels of trust in state institutions, resulting in party system collapse.

Paul Renner: the art of typography

The first study, in any language, of this German typographer and type designer. Renner’s work exemplifies central themes in German culture in the first half of the twentieth century. Starting as an artist and book designer in the Munich cultural renaissance, he was an early and prominent member of the Deutscher Werkbund. In the 1920s Renner worked in Frankfurt, one of the centres of socially-engaged modernism; around this time he began work on his enduring typeface, Futura. Moving to Munich, he ran the printing school that included Jan Tschichold among its teachers. In the crisis of 1933 he was detained and then dismissed from his post. Living through the Nazi years in inner emigration, Renner emer­ged as a voice of experience and reason in postwar debates.

Flight to quality? An investigation of changing price spreads in commercial real estate markets

Purpose – The purpose of this paper is to investigate the effect of the crisis on the pricing of asset quality attributes. This paper uses sales transaction data to examine whether flight from risk phenomena took place in the US office market during the financial crisis of 2007-2009. Design/methodology/approach – Hedonic regression procedures are used to test the hypothesis that the spread between the pricing of low-quality and high-quality characteristics increased during the crisis period compared to the pre-crisis period. Findings – The results of the hedonic regression models suggest that the price spread between Class A and other properties grew significantly during the downturn. Research limitations/implications – Our results are consistent with the hypothesis of an increased price spread following a market downturn between Class A and non-Class A offices. The evidence suggests that the relationships between the returns on Class A and non-Class A assets changed during the period of market stress or crisis. Practical implications – These findings have implications for real estate portfolio construction. If regime switches can be predicted and/or responded to rapidly, portfolios may be rebalanced. In crisis periods, portfolios might be reweighted towards Class A properties and in positive market periods, the reweighting would be towards non-Class A assets. Social implications – The global financial crisis has demonstrated that real estate markets play a crucial role in modern economies and that negative developments in these markets have the potential to spillover and create contagion for the larger economy, thereby affecting jobs, incomes and ultimately people’s livelihoods. Originality/value – This is one of the first studies that address the flight to quality phenomenon in commercial real estate markets during periods of financial crisis and market turmoil.

The information capacity of hypercycles

Hypercycles are information integration systems which are thought to overcome the information crisis of prebiotic evolution by ensuring the coexistence of several short templates. For imperfect template replication, we derive a simple expression for the maximum number of distinct templates n(m). that can coexist in a hypercycle and show that it is a decreasing function of the length L of the templates. In the case of high replication accuracy we find that the product n(m)L tends to a constant value, limiting thus the information content of the hypercycle. Template coexistence is achieved either as a stationary equilibrium (stable fixed point) or a stable periodic orbit in which the total concentration of functional templates is nonzero. For the hypercycle system studied here we find numerical evidence that the existence of an unstable fixed point is a necessary condition for the presence of periodic orbits. (C) 2008 Elsevier Ltd. All rights reserved.

Marcas da política da administração popular, na prefeitura de Porto Alegre, de 1989 a 2002

Este trabalho trata de identificar a presença de uma marca da política na Administração Popular, através das estruturas e ações de Comunicação da Frente Popular, sob a hegemonia do Partido dos Trabalhadores, na Prefeitura Municipal de Porto Alegre, de 1989 a 2002. As marcas da política são os produtos e as obras da luta pela visibilidade, e seu campo de ação está na totalidade de suas comunicações, sintetizadas graficamente em uma logomarca. Os governos da Frente Popular, com o PT, em Porto Alegre, imprimiram uma marca, e esta a cada gestão, recebeu ajustes políticos e publicitários. Neste sentido, o estudo abrange as quatro gestões da Administração Popular na cidade: Administração 1 (1989-1992) governantes: Olívio Dutra e Tarso Genro; Administração 2 (1993-1996) governantes: Tarso Genro e Raul Pont; Administração 3 (1997-2000) governantes: Raul Pont e José Fortunati; Administração 4 (2001-2002) governantes: Tarso Genro e João Verle, e (2002-2004) governante João Verle. São analisadas as diferentes apresentações visuais e simbólicas da Administração Popular, suas logomarcas, a partir da compreensão da marca como signo ideológico.

From the national-bourgeois to the associated dependency interpretation of latin America

Nos anos 1960 e 1970 a América Latina foi palco de golpes militares modernizadores e da transição de seus intelectuais do nacionalismo para a dependência associada. Nos anos 1950 dois grupos de intelectuais públicos, organizados entre a Cepal, em Santiago, Chile, e o ISEB, no Rio de Janeiro, Brasil, abriram caminho para o pensamento das sociedades e economias latino-americanas (inclusive do Brasil) a partir de uma visão nacionalista. A Cepal criticava principalmente a lei das vantagens comparativas e suas essenciais implicações imperialistas; o ISEB se focava na definição política de uma estratégia nacional-desenvolvimentista. A idéia de uma burguesia nacional era a resposta para esta interpretação da América Latina. A Revolução Cubana, a crise econômica dos anos 1960 e os golpes militares nos países do Cone Sul, entretanto, criaram espaço para a crítica a essas idéias com uma nova interpretação: a da dependência. Ao rejeitar totalmente a possibilidade de uma burguesia nacional, duas versões da interpretação da dependência (a interpretação “associada” e a “superexploração”) também rejeitaram a possibilidade de uma estratégia nacional-desenvolvimentista. Apenas uma terceira interpretação, a “nacional-dependente” continuava a afirmar a necessidade e a possibilidade de uma burguesia nacional e de uma estratégia nacional. Entretanto, foi a interpretação da dependência associada que foi dominante na América Latina nos anos 1970 e 1980.

O modelo econômico brasileiro dos anos 90

A crise brasileira dos anos 80 encerrou o ciclo desenvolvimentista, que prevaleceu no país por mais de 30 anos, e abriu as portas para uma série de *transformações importantes na economia brasileira. Nos anos 90 iniciou-se a reforma do Estado e a liberalização comercial e financeira, que seria ampliada e consolidada com o Plano Real. O objetivo deste trabalho é avaliar a natureza e a magnitude dessas transformações na política econômica brasileira, verificando em que medida elas lançam as bases para um novo modelo econômico no Brasil. Até que ponto a turbulência financeira internacional e a crise cambial de 1998/99 comprometeram esse modelo? Quais são as conseqüências do abandono da âncora cambial e a adoção do ajuste imposto pelo FMI?

O campo de energia elétrica no Brasil - de 1880 a 2002

Since electric power is an essential element in modern society, this paper analyzes the historic and institutional factors that have contributed to the formation and organization of the Brazilian electric sector, from the time when it started to be used in this country until the end of year 2002. This analysis is based on a linear description of historic facts, giving emphasis to crucial events ¿ or critical incidents, as they were called for the purpose of this paper. As to these happenings, the social actors who played an important role in the development of the Brazilian electric power sector were analyzed. An analytical model based on the theoretical references offered by the Institutional Theory was used. The study also highlights the elements that comprehend the development of the phenomenon in face of the ambivalence existing in a developing country, which is the case of the Brazilian electric power sector. The organizational fields that were established at the time determined by the main crucial incidents presented throughout the length of time covered by this study. The resources that the main social actors involved in the electric power sector may use by are also identified, as well as their main interests and level of influence these actors may have. Several documents were analyzed. The qualitative methodology was used. Also, many semi-structured in-depth interviews of the people who have made the history of this sector for reliability were conducted. Finally, this study includes the main elements that have shaped the institutional model of the Brazilian electric sector. It also characterizes the external environment as the element which has most influenced the sector and has also led its way throughout the different developmental phases, especially with respect to funding. The growing rates of power consumption indicate the need for a constant increase in the supply of electric power to meet the needs of society and economic development. This requires constant investment. Lack of investment is a limiting factor. Not only does it hinder the development of the country but it may also result in very unfortunate mishaps such as electric power rationing, such as the kind we had to endure a while ago.