Current location - Trademark Inquiry Complete Network - Futures platform - Based on the five elements of internal control, this paper analyzes the problems existing in the internal control of Bahrain Bank.
Based on the five elements of internal control, this paper analyzes the problems existing in the internal control of Bahrain Bank.
First, investors must control risks. The direct cause of losses in futures trading is the misjudgment of the market. He believes that the Japanese economy will recover immediately after the Kansai earthquake, but in fact, it has been difficult for the Japanese economy to recover. The Kansai earthquake accelerated the economic downturn in Japan, and the Nikkei 225 index dropped from 10/995 19500 in early October to19500 in early 2002. Of course, if Leeson realizes the market misjudgment and can control the risk stop loss in time, there will be no risk event. Leeson, on the other hand, gambled against the market with all his eggs in one basket, trying to reverse the market, which eventually led to the collapse of Bahrain Bank.

Second, establish an effective mutual restraint mechanism within financial institutions. Allison has been the chief trader at the front desk and the settlement supervisor at the back desk from the first day when Bahrain Bank Singapore Futures Company started trading to the day when it closed down. These two crucial positions are held by Allison alone, which facilitates his ultra vires and illegal transactions. When the internal auditor pointed out in August 1994 the seriousness of the futures company's failure to implement post restrictions, the senior leaders of Bahrain Bank Group turned a blind eye. In recent years, the internal audit department failed to find out in time that the company had used the "88888" account for a long time to conduct unauthorized transactions, resulting in serious losses. All these have fully exposed many loopholes in the internal control of Bahrain Bank.

Third, we should strengthen the examination, supervision and management of the qualifications of senior managers and business personnel in important positions in financial institutions. Because of his skillful business, Li Sen is regarded as a talent, entrusted with heavy responsibilities, but neglected to supervise. Even when the problem was vaguely exposed, the management did not pay enough attention to it, which gradually expanded the situation and led to the collapse of the bank.