This case illustrate the tension/balance that companies with complex and hazardous business models must mull over in operating their internal control. It illustrates the environment in which a derivative trader participated in enormous directional positions on indexes and major European stocks without being detected for over a year. Although the case could be used to educate the principles of internal controls, it truly is likely to be more efficient by eliciting a discussion about how foreseeable the event was, and whether or not there was anything fundamentally flawed about the company's alternatives when it comes to strategy, control systems and culture.
Additionally, it provides a chance to argue the challenges of dealing jointly with a market-wide disaster (subprime) and a business-level disaster.
Societe Generale (B) The Jerome Kerviel Affair case study solution
PUBLICATION DATE: October 02, 2009 PRODUCT #: 110030-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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