The connection between banks and nuclear reactors is not obvious to most bankers, nor banking regulators. But to the men and women who study industrial accidents such as Three Mile Island, Deepwater Horizon, Bhopal or the Challenger shuttle—engineers, psychologists and even sociologists—the connection is obvious. James Reason, a psychologist who studies human error in aviation, medicine, shipping and industry, uses the downfall of Barings Bank as a favourite case study. “I used to speak to bankers about risk and accidents and they thought I was talking about people banging their shins,” he told me. “Then they discovered what a risk is. It came with the name of Nick Leeson.”

By Tim Harford, Financial Times