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Case Study

Barings collapse (B): Failures in control and information use

By Stewart Hamilton, Donald A. Marchand and Alicia Micklethwait

16 pages

March 1996

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Reference: IMD-1-0156

Designed to follow on from “The Barings Collapse (A)”, the case describes how Leeson concealed his unauthorised trading activities, how Barings blindly financed them and how the internal and external controls failed to identify the mounting losses. The case identifies areas of poor internal control inadequate computer systems and breakdown in information flow. The failure of internal and external audit and regulatory systems is also discussed.

Keywords

Control, Information Flow, Audit, Banking

Settings

United Kingdom
1995

Type

Published Sources

Available Languages

English

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This case study is part of a series

Barings collapse (A): Breakdowns in organizational culture & management
Barings collapse (B): Failures in control and information use

This case study is part of a series

Barings collapse (A): Breakdowns in organizational culture & management
Barings collapse (B): Failures in control and information use

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