21 January 2011

What the financial world can learn from a nuclear reactor

An interesting article in the Financial Times by Tim Harford drawing comparisons between the complex, tightly coupled systems of the operation of a nuclear power plant and that of the world banking systems (and by illustration domino toppling competitions). He concludes that it is not possible to make such systems safe by trying to control the behaviour of individual elements but that the solution lies in isolating the impact that the failure of one element can have on the rest of the system.

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