NEW DELHI: The financial meltdown commenced in 2008 could be averted if proper systems to detect risks and take robust corrective steps in time, stated Prof Robert S Kaplan, Marvin, Bower Professor of Leadership Development, Emeritus, Harvard Business School.
While speaking at the AICTE-CII University-Industry Congress 2012 here on the theme 'Importance of Having Professional Schools be Actively Engaged with Leading Practitioners in their Field', Prof Kaplan stated that risk taking is significant to bag competitive edge in industry and also the risk management system needs to be strong to address the eventualities.
It was the academia that created complex financial instruments that was responsible for the meltdown, said Prof Kaplan. He also said that these instruments were responsible for the havoc in the system. The regulatory system was not sufficient to find and address the meltdown syndrome.