When Jerome Kerviel, one trader, lost the leading French bank almost EUR5 billion through his unauthorized trading. The instance describes Kerviel's systems in addition to the internal tracking and reporting procedures, organizational structures, and culture of SocGen so that students reading the case can recognize and discuss the shortcomings of the firm's risk management practices.
The case scenario and epilogue also explain the French government's and Finance Minister Christine Lagarde's response to the disgrace (e.g., imposition of a €4 million fine and increased regulations), prompting apprentice to think the role of government in administration that vigorous risk management practices are succeeded in key industries (such as banking) that are greatly entwined with entire economies.
Consequentially, the case prop up students-during class discussion-to sincerely believe whether it's really practical for one rogue trader to act single-handedly, which components in a work environment authorize or even support risky behavior, and who should be held responsible when such scandals happen. Interestingly, this case highlights a narrative that's not unique. Prior to Kerviel's transgressions were the similar scandals of Toshihide Iguchi at Daiwa Bank and Nick Leeson at Barings Bank, however history has repeated itself. This case gives students a glowing example of the risks of internal, self-inflicted threat on organizations, and it starts a discussion on the best way to avoid it.
Scandal at Societe Generale Rogue Trader or Willing Accomplice case study solution
PUBLICATION DATE: December 06, 2013 PRODUCT #: KEL766-PDF-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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