Case Study

Case Study - It would seem that this is bound to happen...

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Case Study # 2 Kerviel’s actions by his own statement were driven by a desire for acceptance and monetary compensation. Though to the general public his actions are irrational to Kerviel they would have made sense to some degree. Psychologically we are a society driven by things; things we own and things we would like to own. In the case of Kerviel he had a desire to exceed expectations of those around him. He felt that by taking such a risk he would prove that the education of his peers was nothing compared to his own abilities. Kerviel stated, “One of his primary goals was to have his supervisors recognize his “financial genius” . Had Kerviel received the support from his peers that he required he would have had no need to seek out a way to gain his desired effect which lead to his demise. The banks Organizational Architecture of risk helped contribute to the problem by rewarding those that take risk that in turn bring a profit for the bank.
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Unformatted text preview: It would seem that this is bound to happen more often than we are aware, yet there are a few large cases of such actions making the news because of their overwhelming cost, such as in Kerviels case along with Enron. . As an executive at another bank you should be able to determine from this article that though risk at times is a good thing it should not be the main focus by an organization. One should pride themselves on the honesty and integrity of their organization; you would want to win customers by displaying these qualities in your business. At a bank you want the customer to feel at ease with you handling their money and the top priority should be to make that customer want to invest more with the company and to bring others to the company to do the same. Reference Brickley, J. A., Smith, C.W., & Zimmerman, J. L. (2009). Managerial Economics and Organizational Architecture Fifth Edition. New York: McGraw-Hill Irwin....
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This note was uploaded on 11/01/2011 for the course MBA 575 taught by Professor Dr.tvorik during the Spring '11 term at St. Leo.

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Case Study - It would seem that this is bound to happen...

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