Gartner Research

The Societe Generale Incident: Best Practices for Managing Trading Room Operational Risk

Published: 23 June 2008

ID: G00158695

Analyst(s): Jay Heiser , David Furlonger , Douglas McKibben


Recent losses at Societe General highlight some critical problems with the internal control methodologies and application of operation risk at banks. Much can be done to improve risk oversight.

Table Of Contents
  • Overview
  • Overview
  • Analysis
    • "Operational Risk" Defined
    • Like the "Sorcerer's Apprentice"
    • Policy/Process-Focused Controls
    • Technology-Focused Controls
  • Conclusions
  • Recommendations

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