Also, the risk profile idea is: A company's decision makers tend to act in their own self interest. So, when their risk profile is favors high risks followed by a quick exit the company will end taking lot's of long term risks even if it's not healthy for it to do so. EX: There is a continuum of lean manufacturing where each stage is slightly more efficient, but the risk that supply chain issues cascading increases. If everyone is focused on the next quarters profit independent of all other issues then things may be trimmed past the point of reasons. This carries over into every area, if you can get a 6 months supply of a part at significantly below market rates it may be worth it to do so but again risk reward of decision maker informs what the company will end up doing. What separates the financial industry is simply the scale of risks and rewards offered to low level individuals within a company.
Also, the risk profile idea is: A company's decision makers tend to act in their own self interest. So, when their risk profile is favors high risks followed by a quick exit the company will end taking lot's of long term risks even if it's not healthy for it to do so. EX: There is a continuum of lean manufacturing where each stage is slightly more efficient, but the risk that supply chain issues cascading increases. If everyone is focused on the next quarters profit independent of all other issues then things may be trimmed past the point of reasons. This carries over into every area, if you can get a 6 months supply of a part at significantly below market rates it may be worth it to do so but again risk reward of decision maker informs what the company will end up doing. What separates the financial industry is simply the scale of risks and rewards offered to low level individuals within a company.