The massive losses suffered by Société Générale following the actions of a single trader have raised concerns that other financial institutions could be vulnerable to similar failures.
Coda, the IT software group, has warned that in many large financial institutions compliance and process are 'too siloed' and that executives lacked a single set of controls offering them 'a comprehensive and complete view of compliance issues around the business'.
Coda also urged companies to have clear and robust systems in place to prevent errors and limit system weaknesses.
'Manual errors are usually to blame for this kind of fraud, so it is important to have systems in place that require high levels of authorisation and where security is managed carefully.
'Automation is the key. Once a compliance process is defined, technology should be used to automate the process, to ensure that the process is executed exactly the same way every time,' Coda said:
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