There is not much to say about Barings Bank, there are many on Baidu.
The protagonist, Nick Lison, started as an ordinary clerk in Barings Bank, and was promoted by Barings Bank after successfully completing the handling of bad debts in a certain area, and started to engage in securities trading in Singapore. With its boldness, it borrowed customer funds to make up for account losses. Due to the skyrocketing market, it finally made up for losses and turned them into profits, and won the consensus of excellent traders in the market. Barings Bank highly appreciates its performance. But the root of the disaster was planted, and the good luck of the past left him, and finally caused an irreparable mistake.
The film is from 1999, and although it is a bit old-fashioned, there are still some elements that deserve our attention.
Nick's eventual cause of huge losses to Barings Bank was not only caused by his personal factors, but also included factors such as the internal management problems of Barings Bank and the goodwill care of the family.
1. Gambling: Personal factor
Nick is really smart. He transferred the temporary loss of the account to a privately built account and used customer funds to cover it up. The market trend is just in line with his gambling remedial operation, and good luck has brought him to his career. The scenery, but also cast the final fiasco. Never assume you have the market, it's all temporary and anyone trying to sway the market is ultimately doomed and proven to be extremely sad. This principle holds true for financial institutions as well as for our individual investors.
2. Internal management problems of Barings Bank Internal
fund management loopholes: Nick's behavior, if not for the change of verifiers due to internal struggles in the middle of the audit, would have been discovered and corrected long ago. This kind of inspection system obviously has the problems of small frequency and long cycle, and it is difficult to detect some problems of fund transfer and account fraud in time.
Enterprises only focus on profits: Nick used to focus on controlling the amount of losses. Although he took risks again and again, because the amount was not large, he was able to make up for it again and again. Not only did Barings fail to detect his violations, but instead honored Nick as a hero for his huge profits, while ignoring or ignoring the level of risk in Nick's dealings. At the end of a certain year, his superiors compelled him to realize a large amount of trading profits in a short period of time on the grounds that he was fighting for dividends, and finally forced him to take risks and increase his bets, resulting in a huge loss to him personally and to Barings Bank. hit.
Sometimes, the risk of the market is often easy to avoid, and the fatal risk is more from the inside! At this time, I feel that the role of risk management in financial institutions cannot be ignored, which is consistent with the idea of my country's securities market in recent years to promote innovation and strengthen risk control management. Risk management must be continuously improved following the development of the market and business. Once risk control measures are mere formalities and lack of implementation, it may lead to losses or even bankruptcy of enterprises and losses to investors. Recalling the on-the-job graduate thesis on risk management that I wrote some time ago, although the main thing is to cope, but after all, I have learned some knowledge and methods of risk management, and I feel that I have benefited a lot.
3. Love is also a ghost knife!
In the film, Nick once had a great headache for his illegal private operations, and had the idea of abandoning evil for good. However, in the face of his distress, his wife said gently: I trust you, you are so smart! A word from his father-in-law (or father?): Nick, we are so proud of you! Pushed Nick, who could have been reined in the precipice, into the abyss of doom! No matter whether this content is real or specially designed by the film director, I believe that in life, our family will really treat you with their kind consolation and praise, and you will work hard to do better. Great results to reward them! So, whether we can consider listening more to the family's stories, truly understand his inner feelings, don't put pressure on him, use less or don't use such gentle love to give him a knife!
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