ABSTRACT
The business strategy and the strategy of risk-taking seem to be the crucial ‘ingredients’ for overall success or failure for any organisation, including financial institutions. So many times in the past we have witnessed how flawed business models or strategic mistakes led organisations to large-scale disasters. The issue with the business strategy is the time lag required to understand whether the strategy is effective or not. This is normally a slow-moving world because the strategy is always about the long term. Not so often can the destructive nature of a particular business strategy be immediately spotted. It takes time, and sometimes many years, before people can reasonably judge the effectiveness of the strategy.
