Incentives & culture

Culture relates to what a decision maker should do rather than what she can do.

Culture is directly involved in incentives for success and penalties for malpractice.

Culture is directly involved in defining the word risk and the building the framework around when to take it.

Incentives and penalties are thus cultural indicators, which speaks directly to the value of a firm in the long run. It's a non-financial metrics that means a helluva lot.