Today’s complex supply chains are vulnerable to opportunistic behavior.
Complex supply chains with many agents are more prone to problems, and on occasion, to spectacular collapse. Examples from the last few years include the subprime mortgage crisis; the failure of the Peanut Corporation of America; and dioxin-contaminated Irish pork. Without a doubt, today’s complex supply chains are vulnerable to opportunistic behavior leading to sometimes catastrophic failure. But there are five steps managers can take to protect their companies.
1 Comment On: Opportunism Knocks
You stated in your article:
“For example, mortgage lenders and mortgage brokers acted as intermediaries who, once the mortgage was sold for the purposes of securitization, had little or no responsibility for ensuring payments.”
It never was and still isn’t the mortgage brokers job to policy clients and make sure they make the payments. They are simply the salesmen. You wouldn’t expect your TV salesman to make sure you are paying your credit card payments afterward, would you?
Its easy to blame the mortgage brokers because they have first contact with the clients. But the truth is, too many people bought homes recklessly, knowing that they couldn’t afford them. Let the buyers take some responsibility here!