Control complacency rouge trading at Société Générale
Name:
In this assignment, you must answer the “Answer Implying Guilty,” and the “Answer Implying Not Guilty” questions. Both responses must start by stating either “Yes” or “No” for each charge and a brief summary that explains why. One example of the first question was provided.
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Question |
Answer Implying Guilty |
Answer Implying Not Guilty |
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EXAMPLE: Could other DLP traders have manipulated GEDS’s transaction systems like Kerviel did? |
No, the methods employed by Kerviel were so intricate that no one else could have replicated them. |
Yes, Kerviel did not have to customize the systems in any way in order to conceal his unauthorized and fictitious trades. |
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1 |
Had there been any previous instances or notifications of deficiencies in DLP’s controls? |
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2 |
Was Société Générale prudent in assigning sole responsibility for market risk oversight to trading management? |
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3 |
Did GEDS make effective use of market risk management? |
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4 |
Why did financial reporting catch the fraud, not trading management, operations, or risk management? |
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5 |
Was Société Générale so focused on achieving growth on many fronts that it neglected to invest in sufficiently robust systems and internal controls? |
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