The recognition of merit is not a guarantee of equity but its absence undoubtedly means society is less fair because it accentuates the discrimination caused by differences in starting conditions; at the same time society is poorer because it wastes its resources.
Of course, at root, effective risk management lies in evaluating the risk models upon which capital allocations and economic decisions are made. Regardless of the resources and effort a bank puts into forecasting its risk profile, it ought not make crucial capital allocation decisions based on those forecasts until their accuracy has been appraised.