Beyond AMA approval

Operational risk

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In January last year, French bank Societe Generale was sent reeling after revelations of losses made by a rogue trader. In a catastrophic failure of operational risk management, Jerome Kerviel had managed to circumvent the bank's control processes, racking up losses to the tune of EUR4.9 billion ($6.7 billion). An unfortunate reminder of the importance of strong control processes, the episode spurred risk managers around the world to test their systems for similar flaws.The event was reminis