Not learned

Financial Mirror (Cyprus) - - FRONT PAGE -

- Fail­ures of hind­sight, fore­sight and learn­ing, - Ig­no­rance and bounded ra­tio­nal­ity, - Group­think, au­thor­ity and con­form­ity, - Faulty risk cog­ni­tion and risk at­ti­tudes, - Con­flict­ing mo­ti­va­tions and ex­pectancy, - Faulty risk de­ci­sion-mak­ing, - So­cially con­structed emer­gence.

One has only to watch, for ex­am­ple, the video ev­i­dence of the US House of Rep­re­sen­ta­tives House Com­mit­tee chair­man Henry Wax­man’s for­mal public in­ter­ro­ga­tion of BP Amer­ica’s CEO Tony Hayward on 17 June 2010, fol­low­ing the Deep­wa­ter Hori­zon dis­as­ter. This not only pro­vided a graphic ex­am­ple of the ju­di­cial risks that di­rec­tors may per­son­ally en­counter but also demon­strated a de­ter­mi­na­tion by Mr Hayward not to an­swer the chair­man’s pen­e­trat­ing ques­tions!

is seek­ing to ad­dress this.

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