Predictable and Avoidable: Repairing Economic Dislocation and Preventing the Recurrence of Crisis (Chapter 1 - Introduction)

Gower Applied Research 2013 - Gower Publishing Limited West Court East, Union Road, Farnham, Surrey, GU9 7PT, England

14 Pages Posted: 3 Mar 2014

See all articles by Ivo Pezzuto

Ivo Pezzuto

The International School of Management, Paris

Date Written: November 28, 2013

Abstract

Much has been said and written about the 'financial tsunami' and subsequent economic dislocation that occurred in the opening decade of the 21st Century. Professor Ivo Pezzuto is described by business scholars as an expert on the global financial crisis. He has lectured about it at conferences and seminars; written some of the most read and quoted papers; contributed to what is considered the most authoritative book on the subject; and to one of the best known US-based blogs dealing with it.

In Predictable and Avoidable, Dr. Pezzuto offers business school students; academics; and industry experts in the fields of finance, risk management, audit, corporate governance, economics, and regulation, a truly independent and unbiased analysis of the financial crises starting in 2007 and one of the first fully considered expositions of the financial, governance and regulatory reforms needed for the future.

Augmented with personal interviews involving selected global thought leaders and industry experts, the author's narrative focuses on the technical issues that led to the global crisis, but also addresses the human, cultural, and ethical aspects of the events from both sociological and managerial perspectives. The book exposes the root causes and contributes significantly to the debate about the change needed in the banking and finance industries and to supervisory frameworks and regulatory mechanisms.

This analysis enables readers to understand that the crisis we have seen was predictable and should have been avoidable, and that a recurrence can be avoided, if lessons are learned and the right action taken.

Contents: Introduction; The factors that have led to the global financial crisis; The financial crisis was predictable and avoidable; The need for an improved risk governance; The need for cultural change in the organizations and society; Experts’ insights for improved governance; Conclusion; References; Index.

Reviews: Classified as 'Research Essential' by Baker & Taylor YBP Library Services

"Dr Pezzuto’s far-reaching and insightful book on the causes of and cures for the financial meltdown of the late 2000s is a must read for anyone who holds a position of trust. In particular, his comprehensive table on the 'Summary of Causes of the Financial Crisis and Actionable Risk Mitigation Plans' is unparalleled in both form and function." -- John H. Nugent, School of Management, Texas Woman’s University, USA

"This exquisite book sheds a light on the facts that led to the biggest financial crises since the Great Depression. Dr Pezzuto provides the opportunity to understand the extreme risk taking, the excessive power of the banks and the regulation failure. By using fact based evidences, he proves that the biggest financial turbulence of this generation was preventable." -- Daniela Milanese, journalist, Agência Estado, Brazil

"This book impressively fits a number of puzzle pieces of crisis analysis right into a comprehensive structure of ethics and values that will be necessary to shape a world without too much 'pollution', and it shows that through the financial crisis also such a thing as 'financial pollution' became apparent. Highly recommendable at a specifically personal level for leaders of all ranks." -- Peter H. Hoffmann, CEO, Evolta - Evolving Executive Careers / Consulting and Development, and Prof. em. SMCU, Austria

"This remarkable and insightful book shows the reader what really went wrong, and why, in the global financial crisis. A fact-based and unbiased perspective, robustly coupled with analytical insights, 'connects the dots' of all the events that led to the financial meltdown and its aftermath. Based on the author’s own deductive reasoning, his extensive research and his seasoned managerial experience, the book is enriched with valuable 'thought-leaders' insights on the crisis and sound proposals for improved financial regulation." -- Asghar Aghili Dehkordi, CEO Management Consultant to Goldiran Industries Corp, Iran

"This insightful book written by Ivo Pezzuto, a professor of business administration and a renowned expert on the global financial crisis, gives an unbiased and fulsome analysis of the 2007 financial crisis and the global economic dislocation that followed…a valuable work of interest to academics, industry experts and students alike." -- The Economist, Finance Bookshelf December 2013

"A complete and detailed explanation of the financial crisis. There are many popular descriptions of the current financial crisis. There are also many more or less detailed and rigorous analyses of the causes, consequences and solutions of the crisis. But when the student, the teacher or the researcher needs a complete analysis, which includes all the alternative explanations, a deep presentation of the consequences of the crisis and an accurate study of the policies that have been adopted, the number of available books is very limited. Dr Ivo Pezzuto’s Predictable and Avoidable is one of those rare books that deal with this complex subject in an affordable and complete way." -- Prof. Antonio Argandoña, IESE Business School, Spain

"An excellent analysis of the causes of the recent financial crisis. Written for a wide audience, this timely contribution educates the reader on the main causes and effects of the recent financial crisis. It is an accurate and comprehensive treatment of facts that led to the meltdown, substantiated by the overwhelming evidence of various warnings that went unheeded, and corroborated by inspiring interviews with academic and industry experts. Predictable and Avoidable does not limit itself to a sterile a-posteriori criticism, but describes concrete actions to take to prevent the occurrence of similar catastrophic events in the future. A must read!" -- Fabio Mercurio, Head of Derivatives Research, Bloomberg LP, New York, and Adjunct Professor, New York University, USA

Keywords: Financial crises; Finance; Government policy; Financial regulation; Corporate governance; Credit risk management; Financial risk management; Economic policy; Global Financial Crisis, 2008-2009; Euro Zone debt crisis; Scenario Analysis; Business ethics; Organizational cultures; Sociology

JEL Classification: A10; A11; A13; A14; D81; E50; G10; G20; G30; H30; H50; H60; L50; P10; G15; G18; G21; G28; G34

Suggested Citation

Pezzuto, Ivo, Predictable and Avoidable: Repairing Economic Dislocation and Preventing the Recurrence of Crisis (Chapter 1 - Introduction) (November 28, 2013). Gower Applied Research 2013 - Gower Publishing Limited West Court East, Union Road, Farnham, Surrey, GU9 7PT, England, Available at SSRN: https://ssrn.com/abstract=2403500

Ivo Pezzuto (Contact Author)

The International School of Management, Paris ( email )

17, boulevard Raspail
Paris, 75007
France

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