This has traditionally been a problem on Wall Street also -- if your bonus is based on profit, traders maximize profit (but also risk.) Then the company wizes

This has traditionally been a problem on Wall Street also -- if your bonus is based on profit, traders maximize profit (but also risk.) Then the company wizes up and the bonus is based on profit with a risk cap...and traders maximize profit and minimize some form of risk (while taking on some other unmeasured liability, e.g., liquidity)