Risky Business - A Case Study on Operational Risk in Securities Trading Based on the Events in Carnegie 2007-2011:

Abstract: The securities trading business has seen several recent crises in companies that have fallen victims to inadequate control of their risk exposure. Concurrently, others have gone seemingly untouched also through periods of market downturn. This study compares the risk management in Carnegie before and after its collapse in 2008 and extrapolates findings to the securities business in general. It identifies a connection between corporate culture and structure, and how their interplay affects a company's attitude to and control of operational risk. The result implies that upcoming regulations are welcome, but that cultural aspects are important for sustainable risk management.