Beck’s creative challenge to class analysis: from the rejection of class to the discovery of risk-class

Abstract

Beck’s rejection of the relevance of class in Risk Society has had an immense impact on both the fields of class analysis and the sociology of risk. In outlining a novel theory of the systemic importance of risks as side-effects and in making bold claims about how the production and distribution of risks are undermining class inequalities, Beck posed a highly influential challenge to both risk and class studies. Beck’s impact on class analysis however has not been mainly due to widespread acceptance of his original claims about risk and class; rather, it has been research building upon Beck’s work so as to critically depart from his conclusions through which Beck has made his contributions to the study of class. In seeking to identify the impact of Beck’s work on the study of risk and class, this paper, firstly, outlines Beck’s challenge to class analysis. It then proceeds to identify three key areas of research whose development was motivated by their critical engagement with Beck’s work: the literature on risk and the continuity of class; the critical theory of the individualization of class inequality; and the political economy of risk-class. This paper then concludes by critically evaluating Beck’s more recent, partial acknowledgement of risk inequalities by arguing that there are significant limitations in his account of class, but that his work continues to offer a valuable opportunity to inspire future work on class and inequality.     

The prophecy of Ulrich Beck: signposts for the social sciences

Abstract

This special issue on the legacy of Ulrich Beck is aimed to stimulate reflection both on the specific uses to which Beck’s conceptual and theoretical apparatus can be put within risk studies and the wider significance of his academic project for the social sciences. In this end-piece, we draw out the key themes which surface in the different contributions relating to five particular areas: the nature of risk; advancements in methods; issues of non-knowledge and uncertainty; the development of cosmopolitan risk communities; and the situated character of individualization. We discuss the implications of the accounts contained in this special issue and reflect on the impact and influence of Beck’s sustained engagement with colleagues around the globe, concluding that the concepts and methods that Beck bequeathed the social sciences are set to live on and thrive.     

Ulrich Beck: exploring and contesting risk

Abstract

While risk research normally understands risk as an entity that can be calculated using statistics and probabilities – and which therefore also can become the object of insurance technology – it is the production of new, non-calculable risks and therefore also risks that cannot be insured against, which is at the centre of Ulrich Beck’s risk society theory. The article examines Beck’s conceptualization of risk and discusses how he has clarified and further refined the concept since publishing Risk Society in 1986. The article shows, first, how Beck understands risk as an entity that is neither danger nor risk in the traditional sense but rather something in between, which he refers to as ‘man-made disasters’ and ‘new risks’. The discussion then addresses Beck’s position in relation to the ontological status of risk, which is an intermediate position between realism and constructivism. The non-calculability and non-insurability of the new risks are also examined. The article discusses what it means that the new risks are not visible and the significance of non-knowledge for how we understand them. Finally, the new conditions of existence for politics, states and individuals are outlined in the aftermath of Beck’s risk society theory. The article concludes with a discussion of the analytical potential of the theory.     

Cosmopolitan risk community in a bowl: a case study of China’s good food movement

Abstract

Ulrich Beck fundamentally transformed our way of thinking about human interdependence through his three core theses on risk, individualisation and cosmopolitanisation. However, two commonly observed deficiencies in Beck’s grand theory were its Eurocentric orientation and a lack of empirical grounding. Based on 5 focus groups and 14 interviews with participants of the emerging Clean Food Movement in China, this paper extends the Beckian discussion outside Europe. Through examining how individuals understand both ‘traditional’ and ‘new’ risks associated with contemporary food consumption, this paper demonstrates that in the face of unpredictable and incalculable harms, risks are not seen as a ‘thing’, but are translated into ‘causal relations’. Subsequently, for Chinese stakeholders, the best way to safeguard food risks is to enact more visible and functioning interdependent relations in the food system. This in turn has given rise to new forms of communities which cut across conventional geographic, socio-economic and political boundaries. The paper deepens a Beckian theorisation in two ways. First, it demonstrates that the ‘enabling’ effect of risk towards a cosmopolitan society is not limited to obvious global crises, such as climate catastrophes and financial meltdown. In fact, the mundane yet intimate concern of putting ‘good’ food in one’s dinner bowl already presses actors to form new social solidarities that are cosmopolitan in nature. Second, it goes beyond Beck’s assertion that the risk society has culminated in a cosmopolitan moment, and explores how a performative cosmopolitan community reshapes the ‘relations of definition’ to mitigate risks on the ground.     

Thinking with Ulrich Beck: security,terrorism and transformation

Abstract

Ulrich Beck is considered to be one of the most innovative and provocative social science thinkers of the last 50 years. His landmark contribution, Risk Society: Toward a New Modernity, sought to capture the underlying dynamics of the late twentieth century, drawing attention to the anthropogenic dangers generated by capitalist modernization. First published in Germany in 1986 under the title Risikogesellschaft, the best-selling book was translated into several languages and thrust Beck into the academic spotlight. The social and institutional critique presented in Risk Society caused ripples that spread way beyond academia, with the risk society thesis becoming the subject of widespread debate. However, in the field of risk research, Beck’s work has received a mixed reception. While some scholars have contested the foundational claims made in the risk society thesis, others have actively deployed the framework to analyze various incidents, processes, and transitions. Rather than seeking to cast judgment on the value of Beck’s overall contribution to studies of risk in the social sciences, this article seeks to actively deploy three concepts developed by Beck over the course of his career: staging; organized irresponsibility, and emancipatory catastrophism. In order to elucidate the explanatory capacity of these concepts, the phenomenon of terrorism is used as a touchstone for discussion. Following on from this – and as a means of extending appreciation of Beck’s work in risk studies – key areas worthy of further excavation are identified.     

Four questions for risk communication

The ‘relational theory of risk,’ proposed by Åsa Boholm and Hervé Corvellec in Journal of Risk Research in 2011, offers a theory of human constructions of risk, a theory that has not only sociological, but also ethical implications. Drawing upon interdisciplinary sociological and philosophical material, the present article suggests three ways to refine the relational theory of risk. First, I call attention to threatening relationships that are dangerous rather than risky. Second, I argue that a risk relationship only implies the ‘exclusion’ of the threatening object if the person who constructs the risk relationship chooses to distrust the threatening object rather than to trust it. Third, I amend the relational theory’s explanation of social risk conflicts by raising the question of the origin of the harm, either in the injured party itself or in the external environment. These refinements strengthen the explanatory power of the relational theory both regarding sociology and ethics. In consequence, I propose a Relational Theory of Risk and Danger.     

The politics of urban climate risks: theoretical and empirical lessons from Ulrich Beck’s methodological cosmopolitanism

Abstract

In the face of global climate risks, world cities increasingly figure in academic and policy discourse as strategic spaces for harnessing the expertise and governance capacity needed to steer societies toward more sustainable and low-carbon futures. This article reviews existing approaches to the study of urban climate politics, by way of asking what contribution Ulrich Beck’s theory of world risk society – and principles of methodological cosmopolitanism – make to such epochal conversations? Three main analytical frameworks stand out: low-carbon transition literature highlight generic processes of socio-technical ‘greening’ of urban infrastructures; urban policy mobility work documents growing intercity networks around climate and sustainability; and actor–network theory-informed takes on urban controversies engage the localized politics of specific city-based ‘riskscapes’. While each framework makes valuable contributions, this article suggests that all of them remain under-theorized from the point of view of the specific dynamics of local–global interdependencies in urban climate risk politics. In response, the article draws on Beck in outlining the contours of new urban–cosmopolitan risk communities. To this effect, empirical studies into large-scale East Asian and European port cities is used to illustrate how a shared transnational risk imaginary (e.g. of future sea-level rises) may help spur collective action and new forms of trans-boundary solidarity. Reflecting on such research practices, the article ends by pointing to the need for reworking methods of (multi-sited) ethnography and comparison as central parts of realizing Ulrich Beck’s cosmopolitan sociology in the domain of urban climate risks.     

Transitions in environmental risk in a transitional economy: management capability and community trust in Russia

Following the collapse of the Soviet Union 10 years ago, the Russian Federation has undergone a radical social, political and economic transformation. This paper's focus is particularly on the consequences of this transformation for the natural environment. This is done by utilizing Beck's (Risk Society: Towards a New Modernity, London: Sage, 1992) concept of Risk Society to explore the interrelationships between managers, firms and communities in terms of transitions in capabilities, knowledge, trust, and even the very notion of community vis‐à‐vis pollution control and environmental protection. A qualitative study of managers in Russian manufacturing enterprises, environmental regulators and local communities, was undertaken in two provincial Oblasts in the Russian Federation, identifying a number of factors characteristic of Beck's (1992) treatise including ‘risk culture’, ‘organized irresponsibility’, ‘individualization’ and ‘subpolitics’. In so doing a deeper understanding is developed of the impact of economic transition on the environment, indicating a different risk society trajectory to that predicted for the West. The implications for continued, in‐depth research in focusing on economies in transition are also discussed.     

The apparatus of fraud risk

‘Fraud risk’ is ontologically different from fraud. Fraud itself is a disruptive event; fraud risk can and must be governed. This essay draws on Foucault’s concept of an apparatus (dispositif) to explain the emergence of this difference. The analysis begins with a concrete case and explicates the history of fraud risk which flows through a specific organizational setting. First, it is claimed that fraud risk must be understood in relation to the broader historicity of risk in which risk expands its reach as an organizing practice category. Second, it is argued that the diverse elements of the fraud risk apparatus – words, laws, best practice guides, risk maps, websites, compliance officers, text books, regulatory judgments and many more – have a trajectory of formation. This trajectory begins with auditing and expands into risk management, regulation and security more generally. Fraud risk management emerges as a highly articulated, transnational web of ideas and procedures which frame the future within present organizational actions, and which intensify the responsibility of senior managers. Overall, the paper challenges the common sense idea that the present shape of fraud risk management is a functional necessity demanded by fraud events. The purpose is to display the historically contingent regime of truth for speaking about fraud, risk and responsibility in organizations. The paper suggests that this ‘regime of truth’ consists in a form of managerial and regulatory knowledge with a ‘grammar’ governing rules for talking about and acting on risky subjects and organizations. The rise of ‘fraud risk’ management and its prominent position within the field of corporate governance in the 21st century is emblematic of an ongoing neoliberal project of individualization and responsibilization.     

Optimal investment of an insurer with regime-switching and risk constraint

We investigate an optimal investment problem of an insurance company in the presence of risk constraint and regime-switching using a game theoretic approach. A dynamic risk constraint is considered where we constrain the uncertainty aversion to the ‘true’ model for financial risk at a given level. We describe the surplus of an insurance company using a general jump process, namely, a Markov-modulated random measure. The insurance company invests the surplus in a risky financial asset whose dynamics are modeled by a regime-switching geometric Brownian motion. To incorporate model uncertainty, we consider a robust approach, where a family of probability measures is cosidered and the insurance company maximizes the expected utility of terminal wealth in the ‘worst-case’ probability scenario. The optimal investment problem is then formulated as a constrained two-player, zero-sum, stochastic differential game between the insurance company and the market. Different from the other works in the literature, our technique is to transform the problem into a deterministic differential game first, in order to obtain the optimal strategy of the game problem explicitly.     

EXAMINING THE PRACTICAL RELEVANCE OF PUBLIC SECTOR MANAGEMENT ACCOUNTING RESEARCH

Concerns exist that practical relevance is becoming devalued as accounting scholars respond to signals about what sort of research ‘counts’. We categorize public sector management accounting papers in six leading journals according to two criteria: the practical orientation of the research objective(s), and whether the conclusions communicate issues of practical relevance. The findings reveal that most of the papers are directed towards understanding or critiquing the use of management accounting techniques, while other practically oriented research objectives are largely absent. Although half of the papers identify practical research implications, few suggest guidelines for practice. Reflections are offered on the role of leading journals in shaping how practical relevance is valued in accounting research.     

Do Macro-economic Crises Determine Accounting Value Relevance?

Abstract

We investigate whether the value relevance of earnings and book values in Turkey significantly changed across periods of financial uncertainty. Our enquiry differs from the mainstream literature that posits a unidirectional association determined by the ‘quality’ of individual firm accounts towards price. We find divergence in accounting value relevance components across the 1997–2012 period. Dominant value relevance shifts from earnings and negative interest rates in hyper-inflation, to the balance sheet after IFRS in 2005. On the other hand, the global financial crisis (GFC) is associated with diminished accounting value relevance for all variables. Policy issues are raised about value relevance consistency, the use of negative (low) interest rates as fiscal policies and the asymmetric application of market based valuations in emerging economies.     

Confidence,knowledge, and compliance with emergency evacuation

This article considers how risks are responded to through behavioral adaptations and avoidance strategies. We observe that such behavior can become totemistic and have a limited relationship to the risk it ostensibly answers to. Drawing upon examples such as recycling and original data from a study on drink‐spiking avoidance, the article sets out a new concept for discussing and understanding such risk‐related behavior: the ‘risk ritual’. We elaborate upon this concept in the article, identifying a number of tendencies in risk rituals and drawing upon anthropological and sociological work on the nature and uses of ritual. We compare the ‘risk ritual’ to religious and community rituals, exploring the connections between the former and the rain dance, religious ablutions, abstinence from eating meat on a Friday, and rite of passage ceremonies. Influenced by the cultural approach to risk, we argue that risk rituals, like rituals more generally, are shaped by social conditions, currents, and processes, such as the emphasis on personal responsibility for risk management and the desire to mark out the ‘sacred’ and the ‘profane’. The article concludes that ritualistic risk behavior is better viewed as functional rather than irrational.     

New development: Scarcity,policy gambles,and ‘one-shot bias’—training civil servants to speak truth to power

ABSTRACT

Allocating scarce resources to meet policy objectives incurs opportunity costs. A vital element of ‘speaking truth to power’ thus involves officials advising ministers on the opportunity costs of high-risk ‘pet projects’. In democracies, the brevity of ministerial office can produce ‘one-shot bias’—radical policy-making that deploys ministers’ time-limited powers to the full, yet risks producing significant opportunity costs for public service organizations. Examples include the UK’s recent social security, healthcare and European policies. Training in the economics of organization, development of new techniques for coping with uncertainty in opportunity-cost estimates, and stronger incentives for decision-makers to consider ‘benefits foregone’ by their actions could all provide greater protection against the downsides of one-shot bias.     

Risk and the cosmopolitanization of solidarities

Abstract

For classical sociologists, national solidarity was a response to the risks and uncertainties of modernity. National solidarity was said to provide the foundations for social order and justice (Durkheim), serve as the basis for political legitimacy (Weber), and address issues of (in)equality (Marx). Throughout the twentieth century, national solidarity seemed to perform these functions adequately, if often at the expense of those not belonging to the national community. However, with the demise of progress as a cultural prophylaxis to contain the future, it is often said that newly emergent world risks spell the end of solidarity. On this view, risk, individualization, and the cosmopolitanization of life worlds are contributing to the fragmentation of societies and pushing solidarity toward expiration. Yet, this jeremiad is based on an anachronistic notion of solidarity, which does not account for the recent adaptations of nationhood. In contrast, I argue that new global risks are not detrimental to the notion of solidarity but rather serve as a precondition for the emergence of cosmopolitanized solidarities. Global culture and political norms from human rights to environmentalism have catalyzed a reimagining of nationhood itself. In order to grasp new forms of solidarity which buttress this reimagined nationhood, I draw on Ulrich Beck’s distinction between three historically specific iterations of the concept of risk, as something that: can be calculated; is malign and incalculable; has the potential to generate goods.     

The meaning of risk-taking – key concepts and dimensions

Dealing with and taking risks are central issues of current societies which had been characterised by heightened debates and conflicts about risk (Beck, Giddens). Even though there is good knowledge available, policies and strategies to reduce people’s risk-taking are often less successful than expected. Experts are puzzled about common people not following good advice presuming people’s lack of understanding. While this might be true in many cases a growing body of research shows, rather than being merely ignorant or misinformed, people often have good knowledge when taking risks. A growing body of research provides knowledge about the complexities, dynamics and contradictions of people’s risk-taking. However, there have been little attempts to systematise this body of knowledge. This article contributes to such an enterprise. It suggests distinguishing between different motives for risk-taking, different levels of control and a number of ways how reflexivity about risk is rooted in the social realm. It also explores how risk-taking is part of developing and protecting a valued identity. The article concludes, across different domains there is good evidence for how structural and cultural forces combine and shape risk-taking while people take risks to develop a valued identity and to protect it. Advancing expert’s understanding of risk-taking and change people’s risk-taking require considering and approaching the larger social contexts and individual risk practices in everyday life.     

Sharing 'worlds of risk'; improving communication with crew resource management

The risk society thesis by Ulrich Beck has been one of the more extensively discussed frameworks in environmental management. This paper tries to give an overview over Beck's extant and fragmented work and ventures to identify the main contributions and implications. It starts with a discussion of the background and principles of Beck's work and identifies the core ideas as well as the theoretical underpinnings. On that basis the paper shows the manifestation of Beck's early ideas in contemporary environmental politics revealing the influence of the risk society thesis especially for environmental management. Following on to more contemporary parts of Beck's work the paper then shows that ‘risk’ and ‘globalization’ are in fact manifestations of the same phenomenon. Both challenge and invert the role of governments on the one side and the role of various social actors on the other side. The paper concludes by discussing major consequences of Beck's thinking for the current agenda of corporate actors in particular.     

Managing risk through the veil of ignorance

Background. We view overconfidence within risk management as a problem likely to manifest within philosophical preferences for anticipationism over resilienism, and in assumptions that risks are objectively real external powers or potentialities rather than subjective knowledge propositions. Methods. We argue that the realist tradition within Italian social theory, first crystallised by Niccolò Machiavelli and later elaborated by the sociologist Vilfredo Pareto, offers valuable lessons for corporate risk management praxis by demanding that we map out the complex relations between the risk subjectivities of risk managers, and their objective risk environments, from a standpoint of psychological and sociological realism which stresses the risk ignorance of practitioners. We caution that risk management efforts to improve risk subjectivities to achieve perfect veridicality to objective risk environments might often amount to a wishful bildungsroman of epistemological growth, reflecting the common aspirations of risk managers to demonstrate professional competence. We suggest that the profession should control this overconfidence problem by stressing the corrigibility of risk subjectivities with reference to sociological understandings that reflect on the widespread risk ignorance that can persist and even intensify where risk management effort is made. Results. Following the macrosociological framework sketched by Pareto, we show how two common ‘modes of uncertainty’ can be scrutinised for their adaptive fitness to two common types of risk environment. Conclusions. It can be helpful to think sociologically of organisations as engaging with some highly significant strategic risks blindly through a veil of ignorance.     

Actuarial Issues in the Novels of Jane Austen

Abstract

The novels of Jane Austen have enjoyed a resurgence of popularity recently, and many new readers have come to appreciate the relevance of her stories to modern times. This relevance should be particularly evident to actuaries, however, because the novels deal quite explicitly with the issues of wealth, inheritance, mortality, and life expectancy that confronted the nonworking classes of the early nineteenth century.

This paper examines the six novels of Jane Austen from an actuarial perspective. It provides historical background on inheritances, clerical livings, and mortality, and it analyzes the way in which these issues are central to Austen’s novels. It uses a contemporary mortality table to assess the accuracy with which Austen’s characters estimate life expectancies and annuity calculations. It presents a close study of Sense and Sensibility, a novel in which a number of actuarial issues are central to the plot and are presented in great detail. Finally, it suggests that Austen’s own background and family life meant that actuarial issues were important in her life and therefore reflected in her novels.

This paper offers a new argument for the relevance of great literature, and it offers actuaries a new perspective from which to explore and understand the history of their profession.     

Strategies for Dividend Distribution: A Review

Abstract

In today’s world of financial uncertainty, one major public concern is to assess (and possibly improve) the stability of companies that take on risks. Actuaries have been aware of that issue for a very long time and have a great experience in modeling the activity of a risk business. During the first part of the twentieth century, they focused on the probability of ruin to assess the stability of their company. In his seminal paper of 1957 Bruno de Finetti criticized this approach and laid the foundations of what would become an increasingly popular topic: the study of dividend strategies. The contributions made by actuaries in that field constitute a substantial body of knowledge, whose interest is relevant not only to insurance but also to a much broader range of areas of practice. In this paper we aim at a taxonomical synthesis of the 50 years of actuarial research that followed de Finetti’s original paper.