Chapter 23 : Read : Control Complacency .Rogue Trading at Societe Generale by Steve Lindo Pages 461-488
Then complete the following
Page 475 : Exercise
Page 487 : Answer the following questions in 200 words each
Questions :# 3 -200 words
Question #7-200 words
Question # 9-200 words
Question #14-200 words
- Fraser, J., Simkins, B., & Narvaez, K. (2014). Implementing enterprise risk management: Case studies and best practices. John Wiley & Sons.
|Question||Answer Implying Guilty||Answer Implying Not Guilty|
|Did other traders manipulate the trading system?|
|Did Kerviel show an attitude of manipulating the transaction systems?|
|Did DLP have rules against unauthorized trading?|
|Why did Kerviel make huge bets if he was not benefitting from them?|
|Was there any inconsistencies reported for DLP transaction systems?|
|Did the company have an effective ERM in place?|
|Why did the operations employees not escalate the reports of Kerviel’s unauthorized trading activities?|
|Why did the risk management not discover the fraud but instead the finance department?|
|Were there middle level employees who got promoted to the front desk?|
|Did the company make effective use of market risk management?|
|Did Societe Generale hide some information from presecutors?|
|Did Societe Generale neglect internal controls?|
|Was Societe Generale only focused on growth at all cost?|
|Did Societe Generale admit its wrongdoings for the losses?|
|Was there enough evidence for the prosecutor to sentence Kerviel?|
Question #3: When Kerviel worked in the middle office, did he show any unusual aptitude for manipulating the transaction systems?
Question #7: Was Societe Generale prudent in assigning sole responsibility for market risk oversight to trading management?
Question #9: Why did financial reporting catch the fraud, not trading management, operations, or risk management?
Question #12: Did Societe Generale omit any information at the trial that might have exonerated Kerviel?
Question #14: Did Societe Generale sufficiently admit its responsibility for the losses?