For some reason I can not embed this but here is the temporary video link. I definitely recommend you watch it. Excellent and thought provoking. Collins previously has written Good to Great. If I were the author of his new one, I might have at least subtitled it: From Great to Bad.
Briefly: why is it that many times large debacles (be it in financial risk management, derivatives, marketing, or even life) so often come after high points. So he studies "great enterprises" that fail.
Stage 1 HubrisOne of the keys is that if we know what CAN lead to these blow-ups, we MIGHT be able to stop the process.
Stage 2 Undisciplined Push for More
Stage 3 Denial of Risk and Peril
Stage 4 Grasping for Salvation (Sometimes firms get to this point and survive)
Stage 5 Capitulation to irrelevance or death
Here is the link to the video.
Good, and important. I have already ordered it.
BTW the discussion of risk above and below the water line (about 15:40 in) is worth the price of admission!