The BP Crisis as a 'Preventable Surprise': Lessons for Institutional Investors

Posted: 18 Sep 2012

See all articles by Raj Thamotheram

Raj Thamotheram

University of Oxford - Smith School of Enterprise and the Environment; Preventable Surprises

Multiple version iconThere are 2 versions of this paper

Date Written: May 17, 2012

Abstract

With high-impact, low-probability events increasing in frequency and impact, this article shows what investors can learn from BP’s Gulf of Mexico spill. It identifies six causative drivers, one of which is shareholder value maximization; shows why these events are “preventable surprises”; and describes how investors could choose to be enablers of sustainable capitalism rather than of the dysfunctional markets experienced today. Arguing for a fundamentally different mindset that includes, among other things, acknowledging the importance of “sustainable cash flows” and “ESG beta,” the authors highlight a practical management agenda for long-horizon asset.

Suggested Citation

Thamotheram, Raj, The BP Crisis as a 'Preventable Surprise': Lessons for Institutional Investors (May 17, 2012). Available at SSRN: https://ssrn.com/abstract=2061709

Raj Thamotheram (Contact Author)

University of Oxford - Smith School of Enterprise and the Environment ( email )

United Kingdom

Preventable Surprises

London
United Kingdom

HOME PAGE: http://www.preventablesurprises.com

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
356
PlumX Metrics