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by Andrew Waxman
Rogues of Wall Street
Cover
Title Page
Copyright
Dedication
Introduction: A Risky Business
Notes
Acknowledgments
About the Author
Chapter 1: The Historical Context
Notes
Chapter 2: The Rogue Trader
Who Is the Rogue Trader?
The Crime of Rogue Trading
Tools of the Rogue Trader's Trade
How Rogue Traders Succeed
Can the Rogue Trader Be Stopped?
Notes
Chapter 3: Genius Traders: Who They Are and How to Catch Them
Characteristics of the Genius Trader
How to Manage Genius Risk
Notes
Chapter 4: Insider Trading
What Is Insider Trading
The Industry of Insider Trading
Trading Floors and Chinese Walls
Raising the Bar
Notes
Chapter 5: Price Manipulation Risk: The Big Unknown
Price Manipulation
Earnings Restatements
LIBOR
Foreign Exchange
Collusion
Emphasis on Surveillance
Notes
Chapter 6: The Mortgage Mess
Mortgage Securitization
Indicators of Risk
The Aftermath
Notes
Chapter 7: Ponzi Schemes and Snake Oil Salesmen
Ponzi Schemes
Regulators and Fraud
Bribery and Corruption
Notes
Chapter 8: Rogue Computer
History of Technology in Public Markets and Increasing Risk
Flash Crash 2010
Knight Capital 2012
Facebook and BATS
How Problems Occur
Key Controls
Notes
Chapter 9: Funding the Bad Guys—Winning the AML Battle
Modern Practices of Money Launderers and Undetected Cash Movers
Money Launderers and Terrorists
Legislature and Regulations
Impact of Regulations
An Effective AML Program
Mitigating the Risk
Notes
Chapter 10: Litigation and Big Data Risk
What Is the Risk?
Systemic Risks from Big Data
Notes
Chapter 11: Twitter Risk and Fake News Risk
Note
Chapter 12: Spreadsheet Risk: Should We Ban Excel?
Mitigating the Risk
Notes
Chapter 13: Acts of God Risk
Note
Chapter 14: Cybersecurity—The Threat from Outside and Inside the Firewall
External Cyberthreats
Insider Threats
Taking Cybersecurity Controls to the Next Level
Notes
Chapter 15: Turning the Tables on Risk
Chapter 16: Building the Right Culture: Values, Organization, and Culture
Seeing the Value of Your Contribution
Fixing the Organization
Breaking Down Organizational Barriers to Change
An Ethical Culture
Notes
Chapter 17: The 360‐Degree Risk Management Function
Tone from the Top: Assess Risks as Well as Goals
Connecting Risk to the Rest of the Firm
Connecting Risk Managers to Each Other
Hooking up the Operational Risk Department
Notes
Chapter 18: What We Talk about When We Talk about Risk
Business Goals
Business Process
Risk Dictionary
Top Risk Identification
Control Dictionary
Finally…
Notes
Chapter 19: The Future Is Unknowable, the Present Burdensome; Only the Past Can Be Understood
Internal Loss Incidents
External Incidents
Scenario Planning
Risk and Control Assessment
Notes
Chapter 20: The New Tools of the Trade
Putting People to Good Use and Avoiding Rabbit Holes
Putting Data to Good Use
Putting Psychological Insight to Use
Notes
Chapter 21: Cognitive Technologies
Trade Surveillance
Regulatory Compliance Management
Taking Proactive Steps
Notes
Chapter 22: The Role of Government and Regulators in Managing Risk
Regulating the Markets: The SEC and the CFTC
Regulating Risk Taking: The Federal Reserve and the Treasury
Regulatory Reform since the 2008 Financial Crisis
Notes
Chapter 23: Case Studies and Guiding Principles in Planning for Disaster
First Guiding Principle: Develop Multiple Scenarios and Optionality
Second Guiding Principle: Develop Strategies to Match the Scenarios
Third Guiding Principle: Understand How the World Is Changing
Fourth Guiding Principle: Build Political Will to Resource the Chosen Strategy
Notes
Chapter 24: The Risk Management Society and Its Friends
Attribute 1: A Shared Passion
Attribute 2: Shared Ethical Values
Attribute 3: Willingness to Debate Issues—The Open Society
Attribute 4: Education
Attribute 5: Interconnectedness
Notes
Chapter 25: Conclusion: Seven Traits for Successfully Managing Cognitive Risk
Mature Governance Structure
Top‐to‐Bottom Risk Culture
An Open Mind about Regulation
Understanding the Firm's Unique Risk Profile
Not Just Throwing Money at the Problem
Innovation and Technology
Constant Self‐Analysis
Index
End User License Agreement
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Prev
Previous Chapter
Cover
Next
Next Chapter
Title Page
Table of Contents
Cover
Title Page
Copyright
Dedication
Introduction: A Risky Business
Notes
Acknowledgments
About the Author
Chapter 1: The Historical Context
Notes
Chapter 2: The Rogue Trader
Who Is the Rogue Trader?
The Crime of Rogue Trading
Tools of the Rogue Trader's Trade
How Rogue Traders Succeed
Can the Rogue Trader Be Stopped?
Notes
Chapter 3: Genius Traders: Who They Are and How to Catch Them
Characteristics of the Genius Trader
How to Manage Genius Risk
Notes
Chapter 4: Insider Trading
What Is Insider Trading
The Industry of Insider Trading
Trading Floors and Chinese Walls
Raising the Bar
Notes
Chapter 5: Price Manipulation Risk: The Big Unknown
Price Manipulation
Earnings Restatements
LIBOR
Foreign Exchange
Collusion
Emphasis on Surveillance
Notes
Chapter 6: The Mortgage Mess
Mortgage Securitization
Indicators of Risk
The Aftermath
Notes
Chapter 7: Ponzi Schemes and Snake Oil Salesmen
Ponzi Schemes
Regulators and Fraud
Bribery and Corruption
Notes
Chapter 8: Rogue Computer
History of Technology in Public Markets and Increasing Risk
Flash Crash 2010
Knight Capital 2012
Facebook and BATS
How Problems Occur
Key Controls
Notes
Chapter 9: Funding the Bad Guys—Winning the AML Battle
Modern Practices of Money Launderers and Undetected Cash Movers
Money Launderers and Terrorists
Legislature and Regulations
Impact of Regulations
An Effective AML Program
Mitigating the Risk
Notes
Chapter 10: Litigation and Big Data Risk
What Is the Risk?
Systemic Risks from Big Data
Notes
Chapter 11: Twitter Risk and Fake News Risk
Note
Chapter 12: Spreadsheet Risk: Should We Ban Excel?
Mitigating the Risk
Notes
Chapter 13: Acts of God Risk
Note
Chapter 14: Cybersecurity—The Threat from Outside and Inside the Firewall
External Cyberthreats
Insider Threats
Taking Cybersecurity Controls to the Next Level
Notes
Chapter 15: Turning the Tables on Risk
Chapter 16: Building the Right Culture: Values, Organization, and Culture
Seeing the Value of Your Contribution
Fixing the Organization
Breaking Down Organizational Barriers to Change
An Ethical Culture
Notes
Chapter 17: The 360‐Degree Risk Management Function
Tone from the Top: Assess Risks as Well as Goals
Connecting Risk to the Rest of the Firm
Connecting Risk Managers to Each Other
Hooking up the Operational Risk Department
Notes
Chapter 18: What We Talk about When We Talk about Risk
Business Goals
Business Process
Risk Dictionary
Top Risk Identification
Control Dictionary
Finally…
Notes
Chapter 19: The Future Is Unknowable, the Present Burdensome; Only the Past Can Be Understood
Internal Loss Incidents
External Incidents
Scenario Planning
Risk and Control Assessment
Notes
Chapter 20: The New Tools of the Trade
Putting People to Good Use and Avoiding Rabbit Holes
Putting Data to Good Use
Putting Psychological Insight to Use
Notes
Chapter 21: Cognitive Technologies
Trade Surveillance
Regulatory Compliance Management
Taking Proactive Steps
Notes
Chapter 22: The Role of Government and Regulators in Managing Risk
Regulating the Markets: The SEC and the CFTC
Regulating Risk Taking: The Federal Reserve and the Treasury
Regulatory Reform since the 2008 Financial Crisis
Notes
Chapter 23: Case Studies and Guiding Principles in Planning for Disaster
First Guiding Principle: Develop Multiple Scenarios and Optionality
Second Guiding Principle: Develop Strategies to Match the Scenarios
Third Guiding Principle: Understand How the World Is Changing
Fourth Guiding Principle: Build Political Will to Resource the Chosen Strategy
Notes
Chapter 24: The Risk Management Society and Its Friends
Attribute 1: A Shared Passion
Attribute 2: Shared Ethical Values
Attribute 3: Willingness to Debate Issues—The Open Society
Attribute 4: Education
Attribute 5: Interconnectedness
Notes
Chapter 25: Conclusion: Seven Traits for Successfully Managing Cognitive Risk
Mature Governance Structure
Top‐to‐Bottom Risk Culture
An Open Mind about Regulation
Understanding the Firm's Unique Risk Profile
Not Just Throwing Money at the Problem
Innovation and Technology
Constant Self‐Analysis
Index
End User License Agreement
List of Tables
Chapter 2
Table 2‐1 Infamous Rogue Traders
Chapter 3
Table 3‐1 Trading Losses
Chapter 5
Table 5‐1 Losses from Price Manipulation
Chapter 7
Table 7‐1 Losses from Recent Ponzi Schemes
Chapter 8
Table 8‐1 Losses from IT Failures
Chapter 9
Table 9‐1 Largest Fines Imposed for AML Failures
Chapter 10
Table 10‐1 Largest Settlements with Shareholders' Lawsuits
Chapter 15
Table 15‐1 Repeat Operational Risk Incidents
Chapter 18
Table 18‐1 Risk Taxonomy
Table 18‐2 Financial Risk Impact Method
Table 18‐3 Financial Risk Impact Assessment
Table 18‐4 Reputation Risk Impact Method
Table 18‐5 Media Exposure Impact Method
Table 18‐6 Reputational Impact Assessment
Table 18‐7 Control Assessment
Chapter 19
Table 19‐1 Incident Capture Systems: Basic Information about Each Incident Is Captured
Table 19‐2 Internal Loss Incidents
Table 19‐3 External Loss Incidents
Table 19‐4 Operational Risk Scenarios
Table 19‐5 Risk and Control Assessment
List of Illustrations
Chapter 2
Figure 2-1: Indicators of Rogue Trader risk
Chapter 3
Figure 3-1: Indicators of genius risk
Chapter 4
Figure 4-1: Indicators of insider trading risk
Chapter 5
Figure 5-1: Areas of focus to identify risk of price manipulation
Chapter 6
Figure 6-1: Indicators of product risk
Chapter 7
Figure 7-1: Ponzi risk factor analysis
Chapter 15
Figure 15-1: Threats—Internal and external
Chapter 17
Figure 17-1: All functions collaborate in identifying and managing risks
Figure 17-2: All risk functions collaborate closely for best results
Figure 17-3: Forums for discussing key risks across key business areas
Chapter 19
Figure 19-1: Understand the past to mitigate the future
Chapter 21
Figure 21‐1: Example of trade surveillance visualization analytics—show changes in emotional temperature
Figure 21‐2: Example of visualization techniques to illustrate relationships between employees
Guide
Cover
Table of Contents
Begin Reading
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