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 ?

Being accountable,...

Encouraging creativity and risk taking but always fostering a culture of taking responsibility and being accountable for own actions are key competencies that BBBB is promoting and as a fact written on our mission statement.
We have been hearing a lot lately concerning the creation of Bad Banks in the US and Europe in order to help the Credit Institutions to clean up their accounts, but one can ask why should the tax payer be called to take over the ”mess” caused by, as many say “ greedy bankers “, where is the social responsibility of these “leaders” , why are they not been called to stand up and “pay” for their “mismanagement”, why is one big bank in Europe paying 90 millions Euros in form of Bonus to their management when the bank has reported a operating loss of 400 Millions in the same period ?
What do you think?