For Finextra's free daily newsletter, breaking news and flashes and weekly job board.
Sport teaches us that if there is a gap or loophole in the rules, someone will eventually discover it and exploit it - until it is banned by the rules. Sport is littered with examples, ranging from the F1 example above, to bodyline bowling in cricket, through
to the backpass in football.
Evolutionary biology is similar - altruism (i.e. self regulation) only works if all sides benefit. Cleaner fish are not eaten when they clean the mouths of larger fish, as the former benefit from the food they find and the latter benefit more from a clean
mouth than a quick meal. In the financial world, FIs all get together to fight fraud, as the disadvantage of one organisation facilitating fraudsters would be outweighed by the sanctions the others would apply to it.
Otherwise, the rules applied by nature (the regulatory environment) are all that counts.
Given the discussion above, it was interesting to see in the news last week that Contador has been suspended by the cycling governing body for a drugs irregularity found during this same event. So could this be the final confirmation that he had been prepared
to do anything, fair or foul, to win this iconic race for the third time? Well the jury is still out as the amount of the banned substance found in the test is so small that Contador argues it could have entered his system through contaminated food. The same
chemical is used (illegally) by farmers to promote growth of lean meat by their cows. In a further parallel between sport and business life, the Contador debate on the web has generated those supporting the current method of regulation and those advocating
nothing less than a complete culture change.
MPI Europe Ltd
06 Jul 2004
08 Dec 2020
01 Sep 2020
24 Jul 2020
13 Nov 2019
This post is from a series of posts in the group:
A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.