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Paranoia (to a healthy degree) is good for information security professionals but drives literally everyone else crazy. I wish people would adopt more of that, though. Maybe we'd see fewer data breaches...
The CEO of my company decided to send a holiday E-Card to everyone right before Christmas. I reported it as a phishing attempt and IT just laughed and said it was fine. Apparently I'm the only one that reported it and just... What? An email from outside our organization that claims to be from the CEO and contains a non-descript link to an unknown website? And I'm the only one that saw red flags from that?!
I'm sorry. I agree with you that your take is valid. I once had to explain to the assistant to the CFO why it was a bad idea to whitelist a gambling website ("they're doing a fun play for the world Cup that uses points instead of real money'") for the team handling customer card payments...and even then she still wanted it done until I told her she had to officially sign a release accepting responsibility for negative outcomes.
IT probably just laughed at the absurdity. C suite does whatever it wants and IT just has to deal with the fallout.