In the years leading up to the global financial crisis a decade ago, risk was viewed at many financial institutions in a very different way than it is today. The financial system was like a highway on which different vehicles traveled without paying much attention to the rules of the road. Some moved at incredible speeds, making decisions without looking out for hazards. Others drove more mindfully, yet still rarely looked up to gauge risks. And a few others stayed in the slow lane, maintaining a steady low speed, and making moves only after carefully considering all imaginable consequences.
Then the financial crisis hit and there was a billions-of-dollars pileup on Wall Street.