Bank runs are psychological phenomena feeding off inherent vulnerabilities in bank structure and function. These vulnerabilities have been covered thoroughly in the past few weeks, prompting ideas for how the banking system might be restructured to increase
Thanks for a very informative and timely post. I am sure you simplified it too much to ensure the post is understood by less technical readers. But even if you don’t skip any of the details, do you think this is applied in any of the living banks, no matter what size? You gave a couple examples of study/research, but can it be applied in a raw business environment where C-level folks are just responding to their own ego trips and where revenue generation of today is seen more important than sustenance of the system long term?
Awesome synthesis of a complex topic! Thank you for making it so easy to understand.
I have been thinking about a similar approach to build a better understanding of causal events and their relationships that lead to patient harm in a surgical procedure involving a medical device. There are a lot of moving parts, from start to finish, in a typical develop-build-launch-manufacture-ship-use cycle of a typical medical device. As a result, if you look at adverse events data, generally a direct link to a device issues is not found when injuries are reported. Yet, patients are getting hurt. So how do we improve our system? Difficult question, but I have a feeling a systems approach can help.
Very well written! Getting people and business buy-in for system thinking is hard and making it accessible helps a lot. While it is implicit in some things, once it involves people there seems a lot of resistance in my experience.
System Dynamics of a Bank Run
Thanks for a very informative and timely post. I am sure you simplified it too much to ensure the post is understood by less technical readers. But even if you don’t skip any of the details, do you think this is applied in any of the living banks, no matter what size? You gave a couple examples of study/research, but can it be applied in a raw business environment where C-level folks are just responding to their own ego trips and where revenue generation of today is seen more important than sustenance of the system long term?
I'm interested in modelling the system dynamics of climate change mitigation and AI X-risk. Think you'll get out articles on those at some point?
Awesome synthesis of a complex topic! Thank you for making it so easy to understand.
I have been thinking about a similar approach to build a better understanding of causal events and their relationships that lead to patient harm in a surgical procedure involving a medical device. There are a lot of moving parts, from start to finish, in a typical develop-build-launch-manufacture-ship-use cycle of a typical medical device. As a result, if you look at adverse events data, generally a direct link to a device issues is not found when injuries are reported. Yet, patients are getting hurt. So how do we improve our system? Difficult question, but I have a feeling a systems approach can help.
Very well written! Getting people and business buy-in for system thinking is hard and making it accessible helps a lot. While it is implicit in some things, once it involves people there seems a lot of resistance in my experience.