"Normal Accidents" as Described by Richard Bookstaber - Essay Example

Only on StudentShare

Extract of sample
"Normal Accidents" as Described by Richard Bookstaber

This is because wrong investments may lead to regrettable financial moments for the investors. The best that an investor may get out of a bad investment is cost aversion. In the absence of this, the investor may be very certain that he or she would be running at a lost. In some cases, the choice of investment is not necessarily what constitutes a bad investment for an investor. Rather, it is the approach used in investing. So an investor may be selecting the best form of investment but he or she may be approaching the investment wrongly. This is exactly the point outlined by Bookstaber in his book, A Demon of our own. The writer is very concerned about approaches that are taken by investors because in his opinion, a series of tightly coupled processes may only lead to normal accidents, which not as the name suggests, may be very disastrous. Normal Accidents Explained In his writing, Bookstaber describes normal accidents in relation to financial forces. The writer first uses scenarios of other forms of forces to explain his arguments of normal forces. The writer notes that “if you put in an extra warning light or sensor on a nuclear reactor or an airplane, that's one more thing that could fail, causing confusion and a disastrous cascade of cause and effect” (Fitch, 2009). ...Show more


“Normal Accidents” as described by Richard Bookstaber Introduction Financial investments are often done in relation to the prevailing global economic climate. Once there is a stable global economic climate, it can be expected that investors would invest more and the result of this is a booming global economic growth…
Author : hlubowitz
Save Your Time for More Important Things
Let us write or edit the essay on your topic
""Normal Accidents" as Described by Richard Bookstaber"
with a personal 20% discount.
Grab the best paper

Related Essays

The Current Financial Crisis: Causes and Policy Issues
The leverage ratio for minimum risk based capital requirement was initially 2% and the increased to 4.5% meant to help the situation. However in measuring total risk based capital the committee has retained the framework that was adapted initially in determining risk based capital.
14 pages (3500 words) Essay
The Likely Impact of the Basel II Accord on Shipping Finance
The paper looked at risk assessment applied by financial institutions as imposed by Basel II accord and the behaviour of shipping industry. Most financial institutions are trying to eliminate shipping finance because of these risks. This leaves the shipping industry with the option of finding other sources of financing.
43 pages (10750 words) Dissertation
A Study of BP and its Stakeholders in Nigeria.
BP is regarded as one of the world’s leading international oil and gas organization which provides its customers with fuel which is needed in transportation, energy required for heat and light, retail services and also of petrochemicals products. The company tends to produce a diverse range of energy portfolio ranging from road, to home, business; BP produces natural resources on which the entire world depends upon.
8 pages (2000 words) Research Paper
Foreign Exchange Rates as Unbiased Estimate of Future Sport Rates
The objective is to establish proof that EMH in its weak form is evident in currencies, since EMH was originally developed for the equities market. Investors and businessmen seek to avoid the risks of unexpected market fluctuations which tended to raise costs and increase the chances of losses, by discovering methods of forecasting future exchange rates.
26 pages (6500 words) Dissertation
Shell Elements: Implementation in Sequentially Linear Analysis
The dynamic response represents the most intricate type of shell behavior, which applies a controlling impact over the design in the areas of high seismicity. Although the Finite Element programs are often used to carry out the dynamic analysis of shell structures, however, such programs should be used effectively on the basis of a profound knowledge of shell theories and shell mechanics as well as on the basis of an understanding of the fundamental concept of the analysis method.
36 pages (9000 words) Dissertation
Sustainable Marketing
This simple process becomes complicated when customer’s preferences change, there are competitors and complimentary firms in the process of such need satisfaction etc. Thus the need for managing the sale process through various techniques like marketing mix, strategies and branding innovations arises (Drummon.
11 pages (2750 words) Coursework
Risk management
The yield curve of U.S. Treasury securities is regarded as a market benchmark because it is frequently used as a vital reference point by fixed income investors in order to evaluate the market conditions. The slope of yield curve predicts the future economic activity and that’s why it is used by the investor as a forecasting tool in order to understand the movement in future economic activities.
8 pages (2000 words) Essay
Interest Rate Parity, Exchange Rates
I cannot forget the Etisalat outbound call centre staff for their time and willingness to participate in this research. Finally special thanks go to my mom and late dad for letting me fulfil my dreams. Studies indicate that involvement of employees in the
1 pages (250 words) Essay
Financial Management Assignment
The deal is historically the third largest corporate deal that will end very controversial 14 years venture between the two groups (Business Today, 2013). In 1999, Vodafone entered the US market through a series of mergers and acquisitions that
5 pages (1250 words) Essay
Analysing specific financial issues in Oxford Instruments PLC
Investors therefore need to perform the analysis of financial statements including performing ratio analysis to ascertain the financial health of the company besides gaining insight into the financial future of the company. Oxford Instruments Plc is a UK
5 pages (1250 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email