Northwestern Polytechnic University Control Complacency Discussion Chapter 23 : Read : Control Complacency .Rogue Trading at Societe Generale by Steve Lind

Northwestern Polytechnic University Control Complacency Discussion 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#12-200 words Question #14-200 words Required Resources 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?