Based on our lengthy experience in consulting with financial services organizations, the partners at IBS have found the following pitfalls to be significant risk factors during difficult economic times.

1. Believing that it is necessary to lower selection standards because good people are more difficult to attract and bring on board. Subsequently, failing to hire the right people and/or putting people into roles that play to more of their weaknesses than their strengths.
2. Assuming that current risk management policies and practices are sound and have no need for a more objective and thorough evaluation.
3. Adopting a “bunker mentality” that plays “not to lose” rather than embracing bold and inspiring leadership that heightens competitiveness.
4. Believing that significant conflicts among directors or between directors and management will just work themselves out on their own.
5. Relaxing performance standards and accountability because “it’s tough sledding out there for everybody.”
6. Allowing the stress factor to precipitate the “blame game” causing teamwork to regress into finger pointing and deflection of responsibility.
7. Thinking that strategic planning, professional development activities and succession planning are no longer important because of the consuming challenges of the day.