Leadership, culture and employee deceit : the case of the National Australia Bank
Keywords
Auditing and Accountability (150102)risk management
business ethics
board of directors
banks
Australia
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http://www.deakin.edu.au/dro/view/DU:30007470Abstract
The National Australia Bank (NAB), one of Australia's largest banks, announced losses in 2004 of AUD$360 million due to unauthorised foreign currency trading activities by four employees who incurred and deceptively concealed the losses. The NAB had in place risk limits and supervision to prevent trading desks ever reaching positions of this magnitude. However, the risk management policies and procedures proved ineffective. The purpose of this paper is to analyse the deceit, via a content analysis of official investigative reports and other published documents, to determine the extent to which the Bank's culture and leadership may have influenced the rogue traders' behaviour. The findings suggest that cultural issues, and the role played by the Bank's leaders, were influential in creating a profit-driven culture that ultimately impacted the Bank's foreign exchange operating activities.<br />Date
2007Type
Journal, Media ArticleIdentifier
oai:arrow.nla.gov.au:1260806213493145http://www.deakin.edu.au/dro/view/DU:30007470