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Imagine boarding a plane, the captain greets you warmly, the seats are plush, and the cabin crew offers champagne. But as you take off, you overhear the pilots say they have turned off the radar to “focus on speed and comfort.”
That’s what most executive teams are doing: flying blind. In one of my consulting assignments with a small financial institution, the CEO told me proudly: “Our strategy is to grow SME lending aggressively.” I asked, “What’s your risk appetite for NPLs in that sector?” He paused, looked at his CFO, and there was no answer. Read more >> |