Case Study

Barings collapse (A): Breakdowns in organizational culture & management

17 pages
March 1996
Reference: IMD-1-0155

This case is designed to give an overview of the collapse of a prestigious financial institution and the organizational failings that contributed to it. The case outlines the history of Barings Bank, the creation of its securities business, particularly in the Far East, and how Nick Leeson, a Barings trader in Singapore, was able to run up massive losses in derivative trading which caused the collapse of the bank. The case identifies the cultural clashes, remuneration system, control failings and other issues which severely weakened the effectiveness of the matrix management system, an important contributor to the collapse.

Collapse, Matrix Management, Culture, Banking
United Kingdom
Published Sources
© 1996
Available Languages
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