Operational Risk [15]

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Bullet points include: Securities firms differ from firms in most other industries in that it is possible for individuals even at a relatively low level in the firm to create very substantial (fraudulent) losses if controls are deficient. Some other industries, e.g. chemical or nuclear perhaps have comparable vulnerabilities. Negligence, particularly if blame can be pinned on company as a whole, can be triggered by wider range of individuals in a wider range of firms, e.g. BP and Deepwater Horizon oil well. When reading these case studies helpful to reflect on what went wrong and how, through alternative monitoring procedures, controls, organisational structures or incentives, the losses could have been avoided

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