Dangerous Quote by Jerome Powell
“Risk management systems and controls may discourage or limit certain revenue-generating opportunities. Failure to ensure the independence of these functions from the revenue generators and risk takers has been shown to be dangerous, and this is something for which the board is accountable.”
About This Quote
Source Speech: Congressional Hearing on Financial Regulation, 2023
When risk controls are too restrictive they can block profitable opportunities, and if those controls aren’t independent from profit‑making units they become unsafe, making the board responsible for oversight.
In simple terms: Overly strict risk rules can hurt profits; independence is essential.
Key Takeaway
Balance risk oversight with growth goals.
Themes
risk management
board accountability
independence
profitability
governance
Mood
cautious
responsible
strategic
Type
advisory
policy
leadership
When to use this quote
- banking strategy
- investment decisions
- product development
- market expansion
Key Concepts
agency theory
risk appetite
conflict of interest
regulatory oversight
Questions to Reflect On
- How can boards ensure risk functions stay independent?
- What safeguards protect profitable innovation?
A Different Perspective
Independence may be hard to maintain in fast‑moving markets.
![“Teaching might even be the greatest of the arts since the medium is the human mind and spirit. My three [great teachers] did not tell - they catalyzed a burning desire to know. Under their influence, the horizons sprung wide and fear went away and the unknown became knowable. But most important of…” quote by John Steinbeck](https://sms4smile.com/quotes/img-quotes/84c/john-steinbeck-71_art_teaching-might-even-be-the-greatest-of-t_1738.jpg)
