  In this article we investigate the consequences of radiative flavor violation
(RFV) in the Minimal Supersymmetric Standard Model (MSSM). In this framework
the small off-diagonal elements of the Cabibbo-Kobayashi-Maskawa (CKM) matrix
and the small quark masses of the first two generations are generated from the
trilinear supersymmetry-breaking terms. The impact of RFV on flavor-physics
observables is studied in detail. We focus on the limiting cases in which the
CKM matrix is either generated in the down-sector, i.e. by the soft
SUSY-breaking mass insertions delta^dLR_i3 (i=1,2), or in the up-quark sector,
i.e. by the mass insertions delta^uLR_i3. In the first case we find an
enhancement of b->s gamma, which constrains the allowed range of sparticle
masses (Fig. 3). In addition, neutral Higgs penguins significantly contribute
to B_s,d->mu^+mu^- and, if also delta^dLR_32 is different from zero, these
Higgs effects are capable of explaining the observed CP phase in the B_s
system. If, on the other hand, the CKM generation takes place in the up-sector,
|epsilon_K| receives additional positive contributions enforcing large squark
and gluino masses (see Fig. 8). In this case also the rare decay K->pi nu nu
receives sizable contributions. In conclusion we find that for SUSY masses
around 1 TeV RFV is an interesting alternative to Minimal Flavor Violation
(MFV).
