This case study provides an overview of derivative trading, evaluate the adequacy of the internal control policies and procedures put in place by the management of Societe Generale and to investigate the possible implications of risky trading practices of Societe Generale in relation to the requirements of the Basel II accord. And also, the case study will help us identify the management style or approach adopted by the management of the bank.

Though there have been so many regulations recently in this area, even the most diligent bank could equally be at risk of rogue trading individual, except where there is compliance to the requirements of the Basel II accord and the right controls being in place because the culture of compliance is often overlooked on the trading floor.