What company leadership allowed to happen shows a real disrespect for one of the primary risks to the business. Without having the explanation that you describ

What company leadership allowed to happen shows a real disrespect for one of the primary risks to the business. Without having the explanation that you described, the two most likely explanations in my mind are either this was standard practice all along (finally got caught), or somebody made one of those epic fail business decisions. If its #1, I doubt we'll see a clear explanation. If its #2, somebody may have to fall on the sword as the "poster child" of bad business decisions.