Boundary conditions
No one will deny that we are in the midst of a remarkable transformation. A period of long prosperity caused us to tolerate:
(1) globalization by an entrepreneurial spirit5 on overdrive, while losing the necessary risk focus;
(2) over- expansion of global credit (which has created unjustified leverages and weakened firm’s endurance to turbulence);
(3) new forms of financial instruments (which cascaded and dispersed risk far from the source to distant geographies and enterprises);
(4) international connectedness and link- ages (that leveraged economic epidemics); and
(5) interna- tional market expansion, accelerated by the above forces, along with managerial greed.