Jamal Awil

← The Social Control of Impersonal Trust

Risk-spreading mechanisms prove as fragile as the institutions they protect. [causal]

When these guardians of trust that simulate strategies of personalized and contractual control fail, principals turn to their insurance policies, collateral, and margin accounts. Unfortunately, they discover that these institutionalized risk-spreading and compensation mechanisms are no less vulnerable than the institutions they are meant to protect.

Shapiro, Susan P., The Social Control of Imper…, loc. 124