Decision Rights in Financial Services 042612文献资料.pdfVIP

Decision Rights in Financial Services Defining the new normal Too smart to fail Popular portrayals of financial services institutions leading the collapse of lines of business, and in other cases, the What are decision rights? up to the 2008 crisis emphasize behaviors of individual wholesale failure of institutions, yielding extensive losses Decision rights are a and corporate greed, predatory lending, vaguely defined for clients and shareholders. component of organization risk appetite and minimal to non-existent monitoring design. They identify what of that risk tolerance threshold. In a compelling report, When lines of authority for decision-making are unclear, business decisions need the Financial Crisis Inquiry Commission’s 2011 findings unaligned or duplicative, and when the true cost of to be made both to drive described the cause of the collapse as “systemic breaches decisions are not felt by the decision-makers themselves, the business and to drive in accountability at all levels.”1 incremental poor choices can compound into profoundly alignment to strategy; who is negative outcomes. The financial crisis is a painful involved in making them; and