at the time. By lending severe amounts to fund the company's investing for example housing-related assets, made the financial services firm extremely exposed to the financial downturn and subprime crisis. There are numerous examples of where finances are not managed right and where companies, individuals and even countries are liquidated, and even more examples where there has been episodes of financial mismanagement but the situation was still able to be escaped. Prevention Financial mismanagement will always be a possible problem, for businesses, individuals and also entire countries. To prevent personal financial mismanagement it is important to have financial education from an early age. For a business to succeed in their finances it is crucial to employ people with the right qualifications and experiences and to continuously appraise the financial state within the business. See . References External links They Meant Well : Government Project Disasters Corporate governance Corporate finance Financial management