Final answer:
The 2008 financial crisis was due to a breakdown in the controlling function of management, where risk management practices failed, leading to excessive risk-taking.
Step-by-step explanation:
The problems within the finance industry in 2008 have been attributed to a breakdown in the managerial function of controlling. Controlling involves monitoring performance and making adjustments as needed to reach an organization's goals. The financial crisis highlighted significant failures in risk management practices, where the usual controls were bypassed or inadequate, leading to excessive risk-taking and eventual collapse of financial institutions.