The three-way knock-on effect
Peter Nance and Lin Franks look at the interplay between market, credit, and operational risks and consider how firms might approach implementing an integrated company-wide system to tackle them
Take Barings Bank, which – thanks to insufficient monitoring of market and credit activity combined with the failure of operational safeguards – lost $2 billion and ultimately filed for bankruptcy. Other examples include Orange County California, which lost $1.7 billion on interest rate swaps; Metallgesellschaft
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