Exact(52)
And it is investing more than 100 million euros to upgrade its internal risk control systems.
These could be based on models that they now use for internal risk assessment, or that bank examiners have developed.
What seems to trigger this is an internal risk sensor, which, once activated, causes him to become overwhelmingly cautious.
Mr. Adoboli, according to the bank, masked those activities from internal risk controls with fictitious trades.
He did not, however, heed warnings that the firm's internal risk controls were outdated.
As the bet soured, the bank ignored and then adjusted its internal risk alarms.
Similar(8)
One, using banks' internal risk-management models, was rejected because they are insufficiently developed.
They are allowed to use their own internal risk-models to calculate their capital requirements.
Sophisticated banks can use their own internal risk-management systems; smaller banks can use a "standardised" method, which relies on calculating risks on the basis of credit ratings.
Optiver's Mr Elzinga acknowledges the danger but emphasises his firm's internal risk-management standards and the fact that the partners' own capital is at risk, which encourages discipline.
The write-offs are "extremely concerning," and "a reflection of inadequate internal risk-management controls," said John Murray, a money manager with Perennial Value Management, which has a substantial holding of National Australia stock.
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