Friday, October 29, 2010
Blog readers may be interested in Eric Fielding et al.'s new paper, The National Transportation Safety Board: A Model for Systemic Risk Management (Working Paper, Oct. 27, 2010) (available from SSRN here). From the abstract:
We propose the National Transportation Safety Board (NTSB) as a model organization for addressing systemic risk in industries and contexts other than transportation. When adopted by regulatory agencies and the transportation industry, the safety recommendations of the NTSB have been remarkably effective in reducing the number of fatalities in various modes of transportation since the NTSB’s inception in 1967 as an independent agency. Formerly part of the Civil Aeronautics Board (now the Federal Aviation Administration), the NTSB has no regulatory authority and is solely focused on conducting forensic investigations of transportation accidents and proposing safety recommendations. With only 400 full-time employees, the NTSB has a much larger network of experts drawn from other government agencies and the private sector who are on call to assist in accident investigations on an as-needed basis. By allowing and encouraging the participation of all interested parties in its investigations, the NTSB is able to produce definitive analyses of even the most complex accidents and provide genuinely actionable measures for reducing the chances of future accidents. We believe it is possible to create more efficient and effective systemic-risk management processes in many other industries, including the financial services industry, by studying the organizational structure and functions of the NTSB.