Risk Taking

Some people are arguing lately that just as executive involvement is Key in designing and implementing corporate strategy, it is not less important to be also actively involved in risk decisions. We generally agree now that real-estate bubble was in part boosted by a wide spectrum of mortgages that were, in various forms, deceitful, incomplete or mildly formulated not according to “mainstream” account practices. A group of “traditionally” trained credit Risk Managers stressed the fact that these mortgagees were considered to be “high risk”, and, yet, for a big chunk of the “financial” organizations the stubborn focus on short term interests and earnings, the continous “drilled” will to outplace competition made the communication of risk, diminished, incomplete , yes even sometimes silenced while honestly and candid/ open communication were more exceptions than the rule. What do You think ?