The social pressures are huge, and some of the good risk procedures are thrown by the wayside.

Richard Dunn, a former risk control chief at Merrill Lynch quoted in The Wall Street Journal on Jan. 25, 2008 about the $7.2 billion loss generated by the rogue trader at Societe Generale SA. 

 

Social pressures?  What is this?  High School?

As the sorry mess surrounding rogue trader Jerome Kerviel continues to unfold I can’t help but wonder why his “activities prompted questions from risk managers several times last year, but that the bank never began an investigation because his explanations defused any suspicions.”  Isn’t that like asking the fox to give you the hen house inventory report?

This entry was posted on Monday, January 28th, 2008 at 10:38 pm and is filed under Business Blind Spots, Compliance, Costs, Decision Making, International, Leadership, Quote of the Day. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.