Describes how Nick Leeson, Barings, a trader in Singapore, his unauthorized trading activities, such as Barings blind they financed and how the internal and external controls failed to identify the mounting losses hidden. Identified the poor internal control, inadequate computer systems and a collapse of the flow of information. Also describes the failure of the external and internal audit and control systems.

Describes how Nick Leeson, Barings, a trader in Singapore, his unauthorized trading activities, such as Barings blind they financed and how the internal and external controls failed to identify the mounting losses hidden. Identified the poor internal control, inadequate computer systems and a collapse of the flow of information. Also describes the failure of the external and internal audit and control systems.
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from
Stewart Hamilton,
Donald A. Marchand,
Alicia Bernard
Source: IMD
16 pages.
Release Date: 1 January 1995. Prod #: IMD002-PDF-ENG
Barings Collapse (B): Error in Control and Information Use HBR case solution