medium · FRM Part 2 Operational Risk
A bank's internal audit department discovers that a trader has been concealing losses by using a fictitious 'error account' which the trader also controls for settlement.
Which historical case and control failure does this most closely mirror?
- Silicon Valley Bank; interest rate risk mismatch.
- FTX; lack of stablecoin reserves.
- Barings Bank; lack of segregation of duties.
- Long-Term Capital Management; lack of transparency.
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