Safety culture in financial trading: An analysis of trading misconduct investigations
High-profile failures in financial trading have led to interest in how the culture of the industry produces risky and unethical behaviours among traders. Yet, there is no established theoretical framework for studying this: we apply safety culture theory to examine ten recent high-profile trading mi...
| Main Authors: | , |
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| Format: | Journal article |
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Springer
2017
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| _version_ | 1826287738118209536 |
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| author | Leaver, M Reader, T |
| author_facet | Leaver, M Reader, T |
| author_sort | Leaver, M |
| collection | OXFORD |
| description | High-profile failures in financial trading have led to interest in how the culture of the industry produces risky and unethical behaviours among traders. Yet, there is no established theoretical framework for studying this: we apply safety culture theory to examine ten recent high-profile trading mishaps investigated by the UK financial regulator. The results show that the dimensions of safety culture (e.g. Management Commitment to Safety, Systems and procedures) used to understand organisational accidents in domains such as aviation also explain failures in Risk Management within financial trading organisations. This counters narratives focusing on traders who are unethical ‘rule breakers’, and emphasises the value of a systemic approach, whereby safety culture theory is used to explain why risky behaviours in financial trading occur. Safety culture therefore provides a conceptual basis for further research on risky and unethical behaviours in financial trading, alongside providing insights for possible intervention. |
| first_indexed | 2024-03-07T02:03:09Z |
| format | Journal article |
| id | oxford-uuid:9e119134-2da1-4ab6-a2f1-592c5976e1fd |
| institution | University of Oxford |
| last_indexed | 2024-03-07T02:03:09Z |
| publishDate | 2017 |
| publisher | Springer |
| record_format | dspace |
| spelling | oxford-uuid:9e119134-2da1-4ab6-a2f1-592c5976e1fd2022-03-27T00:47:27ZSafety culture in financial trading: An analysis of trading misconduct investigationsJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:9e119134-2da1-4ab6-a2f1-592c5976e1fdSymplectic Elements at OxfordSpringer2017Leaver, MReader, THigh-profile failures in financial trading have led to interest in how the culture of the industry produces risky and unethical behaviours among traders. Yet, there is no established theoretical framework for studying this: we apply safety culture theory to examine ten recent high-profile trading mishaps investigated by the UK financial regulator. The results show that the dimensions of safety culture (e.g. Management Commitment to Safety, Systems and procedures) used to understand organisational accidents in domains such as aviation also explain failures in Risk Management within financial trading organisations. This counters narratives focusing on traders who are unethical ‘rule breakers’, and emphasises the value of a systemic approach, whereby safety culture theory is used to explain why risky behaviours in financial trading occur. Safety culture therefore provides a conceptual basis for further research on risky and unethical behaviours in financial trading, alongside providing insights for possible intervention. |
| spellingShingle | Leaver, M Reader, T Safety culture in financial trading: An analysis of trading misconduct investigations |
| title | Safety culture in financial trading: An analysis of trading misconduct investigations |
| title_full | Safety culture in financial trading: An analysis of trading misconduct investigations |
| title_fullStr | Safety culture in financial trading: An analysis of trading misconduct investigations |
| title_full_unstemmed | Safety culture in financial trading: An analysis of trading misconduct investigations |
| title_short | Safety culture in financial trading: An analysis of trading misconduct investigations |
| title_sort | safety culture in financial trading an analysis of trading misconduct investigations |
| work_keys_str_mv | AT leaverm safetycultureinfinancialtradingananalysisoftradingmisconductinvestigations AT readert safetycultureinfinancialtradingananalysisoftradingmisconductinvestigations |