DENVER—In his opening keynote address at RIMS 2014, Jordan Belfort, the infamous “Wolf of Wall Street,” spoke about the moment when his successful business career took a wrong turn. It wasn’t a big dramatic moment that set off major regulatory red flags, but rather a minor ethical lapse that went largely unnoticed.

The problem was “the ethical line moved,” he said, and it became easier and easier to compromise on his standards until eventually he was thrown in jail for securities fraud.

This proverbial death by a thousand cuts should sound familiar. It is the same thing that happened during the subprime mortgage crisis when greed got the better of mortgage brokers as they stopped really evaluating the credit worthiness of prospective borrowers. And it is the same thing that happens in any organization when complacency sets in and risks are overlooked. As Belfort said, it is the result of “human beings not using common sense” and relying too much on models to make decisions for them.

For risk managers, it is a reminder to never lose sight of the details because details are what can create the biggest headaches.

For Belfort, it took 22 months in jail, millions of dollars in restitution payments and a family upheaval for him to learn the lesson that, “success in the absence of ethics and integrity is not success—it’s failure.”

Belfort said he regrets the harm he caused with his reckless and unethical behavior and cautioned those that are new to the business world to always do a gut check of the business they are involved in and not take it for granted that someone else is making sure everyone stays honest. “If something doesn’t smell right, it’s probably not right,” he said.

He also advised students to master the art of persuasion and communication. It’s a skill that is great for salespeople who are trying to get a client to see positive potential, but it is also great for risk managers who are trying to communicate risk and make sure that the organization takes appropriate measures to address it.

But the point, ultimately, is that ethical behavior leads to greater success than just going for the quicker buck. Contrary to Gordon Gekko’s motto, “greed is not good,” Belfort said. “Passion is good.” At the very least, it certainly beats prison.