Since the height of the financial crisis, there has been a deluge of introspective task forces, round tables and commissions worldwide, aiming to address unmanageable risk in the financial system. But what is the system? Most of the so-called expert groups have focused purely on the economic risk posed by an unregulated and globalised finance sector. But its systemic failure has gone far beyond economic crises, and the one-off patches, such as holding more capital, on offer. Fundamentally, the failed financial system is deeply embedded with environmental and social systems, placing far more than economies at risk.
The convenors of the aforementioned committees should look beyond their traditional circle of advisers to the Finance Innovation Lab, a project hosted jointly by the ICAEW and WWF-UK. A recent meeting of the Lab, which started two years ago, gathered together over 100 people. Their aim? To transform the finance system to address the pressing global, social and environmental challenges of our time, from climate change to poverty.
Collaborate to innovate
The Finance Innovation Lab provides a long-term collaborative space to talk about the challenges and devise, and take forward, genuine solutions. Innovations discussed range from the simple, such as looking at new business models, to the more profound, such as the need for deeper understanding of the psychology of material wealth.
Inspiring minds support the Lab's efforts - from Deborah Meaden of Dragon's Den fame, to Jonathan Porritt, sustainability guru. Almost 500 members are part of the online site. The Lab is a place for open minds, thinking and acting creatively, to help forge a finance sector that can genuinely serve our needs in the 21st century.
Deborah Doane is a member of the ICAEW corporate responsibility advisory group and director of the World Development Movement.
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For further information about the Finance Innovation Lab and its outputs.
Entries are being sought for the ICAEW Corporate Responsibility and Sustainability Award at the National Business Awards. The deadline is 23 June 2010. Find out more about this and ICAEW help and support on sustainability.