Corporate boards of directors have been directly responsible, through their compensation committees and their advisors, for a sharp increase in executive compensation during the 2000s, which may have contributed to excessive short-term risk. - among the financial services companies that helped trigger the recession. Additionally, flawed corporate governance processes are attributed to the failure of risk management systems in many failed banks. Boards of directors of failed banks failed to consider risk factors before approving corporate strategy. Company-provided information on predictable risk factors and risk monitoring and management systems was clearly lacking in many banks. The accounting and regulatory environment was not even effective. Once again, Kirkpatrick (2009) stated that remuneration systems were not suited to the risk appetite, strategy and long-term viability of the business. Buiter (2009) pointed out that there was very little transparency about the off-balance sheet items of complex financial products and the risks that financial institutions bore for the company's shareholders.