Fraud in Turbo Warrant Markets Assignment
Added on - 20 Sep 2019
Executive SummaryThe review of society general report 2008 discusses the fraud committed by the Jerome Kervieltrader on the turbo warrant markets. The report explains the risk profiles which includes variousrisk faced by the company such as fraud, credit, operational, and market. The fifteen areas arefocused for consideration by societe generale senior executives such as equity derivativedivision, a timetable of events, official earnings and others. The three risk issues include fraud,operational and financial risk which needs to be highlighted to the societe generale board.
IntroductionIn this present paper, we will discuss the review of societe generale report 2008 and the riskprofiles are identified then the key drivers outlined in the reports. The paper also describes theareas to be focused on the consideration by a senior executive of societe generale, an order inwhich the areas are prioritized, and risk issues that needed to be highlighted to the societegenerale board.The society generale is the group of expertise which is funded in 1864. The aim of the group is tobecome the relationship-focused bank. The core elements of the company are team spirit,responsibility, innovation, and commitment. It is the third largest multinational bank of France.1.Risk profilesThe risk profile is defined as the evolution of an organization’s willingness of risk taking and thethreats which are exposed by the company. The risk profile is necessary for mitigating the riskand threats of an organization. The risk profile determines the type of risk faced by the societygeneral .Following is the risk which is determined in the report:1.Market risk:The market risk is defined as the risk due to fluctuations in the performance of the financialmarket. It is also known as a systematic risk which can't be eliminated through diversification,but it can be eliminated through hedging. The marker risk occurs due to the recession, change ininterest rate, terrorist attacks and others. It is discussed in the societe generale report.2.Operational risk