Not Just One Man - Barings
   II. Lessons from Leeson
     (a) Segregation of front and back-office
     (b) Senior management involvement
     (c) Adequate capital
     (d) Poor control procedures
     (e) Lack of supervision


















 

II. Lessons from Leeson

(d) Poor control procedures

(i) Funding

(ii) Credit risk

(iii) Market risk

(iv) No limits

In many trading houses, not only is there a separation of operational duties between the front and back-office (absent in Barings), but there is also a unit independent of both to provide an additional layer of checks and balances.

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Case Studies * Not Just One Man - Barings * II. Lessons from Leeson