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Analysing Sumitomo
The obvious problems
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Whether you are a trading partner, the trading management, lender, regulator, market facilitator, reporter, or casual observer, the methodology for analysing a trading problem should be the same. You must expand the problem beyond the obvious to uncover hidden sources and new problems when the instinct is to do the opposite in an attempt to minimize the problem's impact. This expansion process will prevent the two common mistakes made in these situations. The first is denial that various problems exist because these problems may reflect poorly on you or your organization. The second is hindsight bias or reorienting the facts to support your story. By avoiding these pitfalls, Sumitomo and the industry as a whole can make changes and emerge stronger.
The first step in the process is to ask, "What are the obvious problems?" These have been widely reported in the press and we will review them briefly. But even before we list these obvious problems, we need to make sure we all understand the case facts. From the hundreds of bits of reported information, there are ten relevant topics.
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Case Studies *
Analysing Sumitomo
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