Willful blindness on the part of investment professionals, financial institutions, and investors was a contributing factor to the 2008 crisis. What can be done to prevent it from happening again?
Question your assumptions and never underestimate the importance of culture, former Olympus CEO Michael Woodford told delegates at the 66th CFA Institute Annual Conference.
Greg Smith, a former executive director and vice president at Goldman Sachs, caused a stir this March when he resigned from the firm via an op-ed in the New York Times. Although… READ MORE ›
Whistle-blowers provide a real benefit to companies: Fraud costs a typical company about 5% of its revenues, and whistle-blowing is the single most common method of fraud detection. Recent studies show, however, that retaliation against whistle-blowers is on the rise.
The largest corporate fraud in Chilean history offers a cautionary tale not only about improper accounting and misleading financial statements but also about the importance of implementing an organizational culture that encourages employees to take action when they observe unethical behavior.