Thesis (MBA)--Stellenbosch University, 2004. / ENGLISH ABSTRACT: Many companies have suffered large financial losses as a result of the actions of
rogue traders; traders taking unauthorised positions in financial markets - specifically
derivatives markets. Effective operational controls must form the foundation of
managing the risk of derivatives trading.
A large number of institutions, specifically those directly involved in the trading of
derivatives, and regulatory bodies have developed controls and procedures which
firms need to put in place to help manage the risk of rogue trading. Many of the
controls firms can implement are "common sense" however, there are a number of
formal procedures that have been developed.
These risk management practices need to be implemented and overseen by
individuals who have the necessary skills and experience in dealing with the risks
associated with trading in derivative instruments. Many firms consider these risk
management policies and procedures to be sufficient to address the risk of rogue
trading.
However. many firms have come to the realisation that no matter what controls and
procedures they have in place, a well-motivated rogue trader will always be able to
"outfox" the system. This has Jed some firms to consider appropriate risk transference
measures in addition to risk management policies and procedures. Two such
measures are insurance and outsourcing.
At this stage only a limited number of firms are using insuring themselves against
rogue trading or outsourcing their treasury functions. Although this number is
increasing, companies should not dismiss insurance and outsourcing as effective
tools to combat rogue trading, without conducting thorough cost benefit analysis.
This paper offers guidelines to both the common sense and formal measures that are
currently employed by firms to combat rogue trading, as well as a few "fanatical"
options. As rogue traders are continuously pushing the boundaries, we should be
thinking out-of-the box too. / AFRIKAANSE OPSOMMING: Talle maatskappye Iy groot finansiele verliese as gevolg van die aksies van
slenterhandelaars; handelaars wat ongemagtigde posisies in finansiele markte neem
- veral in die handel van afgeleide instrumente. Effektiewe operasionele kontrole
moet die basis vorm om die risiko van handel in afgeleide instrumente te beheer.
'n Groot aantal instellings, spesifiek die wat direk betrokke is by handel in afgeleide
instrumente, en regulerende liggame het kontrolemaatreels en prosedures ontwikkel
wat maatskappye in plek moet plaas om die risiko van ongemagtigde handel te help
bestuur. Verskeie van hierdie kontroles wat maatskappye kan implementeer is
algemene kennis, maar 'n paar formele prosedures is ook ontwikkel.
Hierdie risikobestuursaksies behoort ge·implementeer en bestuur te word deur
individue wat die nodige vaardighede en ondervinding het om die risiko's te bestuur
wat geassosieer word met handel in afgeleide instrumente. Verskeie maatskappye
beskou hierdie risikobestuursbeleidsriglyne en prosedures as voldoende om die
risiko van ongemagtigde handel aan te spreek.
Verskeie maatskappye het egter tot die besef gekom dat ongeag watter kontroles en
prosedures in plek is, 'n goedgemotiveerde slenterhandelaar altyd 'n manier sal vind
om die stelsel te omseil. Dit het daartoe gelei dat maatskappye bo en behalwe
risikobestuursbeleid en prosedures, geskikte stappe oorweeg om risiko oor te dra,
waarvan versekering en uitkontraktering twee insluit.
In hierdie stadium gebruik slegs 'n beperkte aantal maatskappye versekering teen
ongemagtigde handel of uitkontraktering van hul tesourie. Alhoewel hierdie getal
besig is om toe te neem, moet maatskappye nie versekering of uitkontraktering as
effektiewe teenmaatreels teen ongemagtigde handel uitsluit voordat hulle nie
deeglike koste-voordeel analises gedoen het nie.
Hierdie tesis bied riglyne vir beide die algemene kennis en formele maatreels wat
tans deur maatskappye gebruik word om ongemagtigde handel te keer, maar sluit
ook 'n paar "fanatiese" voorstelle in. Aangesien slenterhandelaars aanhoudend besig
is om die grense te oorskry, moet ons ook verby die voor-die-hand-liggende kyk.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/72017 |
| Date | 12 1900 |
| Creators | Russell, Brandon |
| Contributors | Krige, Niel, Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Format | 111 p : ill. |
| Rights | Stellenbosch University |
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