The Importance Of Self Discipline Management Mechanism Essay

798 Words Mar 9th, 2015 4 Pages
Like other areas of human life, competitive market will spontaneously become self-discipline management mechanism because the essence of market operation is self-discipline. With the rapid development of economic globalization and the deepening of network technology, the financial markets are facing fierce competition. After the financial crisis in 2008 most of us found that administrative management cannot fully meet the needs of financial market. Therefore the importance of self-regulation is becoming more and more obvious.

Some people may think that as an auxiliary system the self-discipline mechanism does not have enough impact on the financial markets. However, the self-regulatory mechanism does have some advantages that the administrative management cannot instead of. One of the advantages that often be mentioned is its flexibility. There are two important aspects, the first one is about rules making. Sometimes civil servants have some problems in adjusting regulations because of the legal framework for the government. If the adjustment requires changing the law it will slow down the progress which means the parliament needs to take time to solve it. However, if the change only involves minor legal, the situation may be better. In this case, the organization can enact some necessary measures without the parliament.

Part of supporters believes that self-regulation can respond to the changes more quickly than administrative management. As a private sector, the…

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