This case illustrates the tension/balance that businesses with business models that are high-risk and complex must consider in designing their internal controls. It describes the surroundings in which a derivatives dealer participated in gigantic directional positions on indexes and major European stocks without being detected for over a year. Although the case could be used to educate the basics of internal controls, it's likely to be more effective by eliciting a discourse about how predictable the incident was, and whether or not there was anything fundamentally flawed about the firm's choices when it comes to strategy, control systems and culture. It also provides a chance to discuss the challenges of dealing jointly with a market-wide crisis (subprime) and a firm-level crisis.
Societe Generale (A) The Jerome Kerviel Affair case study solution
PUBLICATION DATE: October 02, 2009 PRODUCT #: 110029-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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