Directors’ dilemma: earning significant profits

In this case study, you are a non-executive director in a financial services company. The company has experienced great success and has earned significant profits through lending assets in unit-linked funds to borrowers, in return for substantial fees to the company. The fees are so significant that they more than compensate the company for any credit risks being taken.

As a non-executive director, how would you react to management’s successful revenue generating initiative?