Inside Job Highlights IT And Oversight Failures At Bank.

The article focuses on the trading scandal at Paris, France-based Sociéte Générale, involving financial trader Jerome Kerviel, who allegedly processed fake transactions. It is noted that Kerviel's unauthorized activities, which have been discovered in January 2008, have cost the company $7.2 billion in losses. In its paper released to the public, the bank asserts that the scandal shows a lesson for companies that information technology (IT) controls are vital for managing corporate risk, but are nothing without proper monitoring and enforcement efforts. Furthermore, it has been found that Kerviel's division had implemented all of the bank's recommended IT controls.