Rogue trading : a risk management approach.

• Main Authors: Chen, Wei Hao., Loo, Laken Chia Teck., Fok, Yi Qin.
• Other Authors: Wan Chew Yoong
• Format: Final Year Project
• Language: English
• Published: 2012
• Subjects: DRNTU::Business::Finance::Risk management
• Online Access: http://hdl.handle.net/10356/48386
• Institution: Nanyang Technological University

This paper utilises a case study approach where we will examine recent cases of rogue trading in banks over the past decade or so, identify the various characteristics of each case and finally, derive a risk management framework with the aim of mitigating future instances of rogue trading. We will focus on the weaknesses in the control environment which the rogue traders exploited, as opposed to the financial instruments (e.g. derivatives and bonds) which they utilised in their schemes. Our analysis is limited to cases where final losses amounted to more than US$500 million, due to the well-publicised nature of these cases.