Such risk management assessments should lead risk managers to point out cases in which certain business lines are assuming too much risk. In other words, it is good to have a few people within the institution who – to paraphrase a former Federal Reserve Chairman – know when to take away the punch bowl.
Being the party pooper, however, can be very difficult in any organization, and that is why it is crucial for the risk manager to be known as an independent voice who is influential with top management and for top executives, of large or small firms, to set the appropriate "tone at the top" with respect to the importance of independent and unbiased risk evaluation.