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In my perspective, I think the two components of the COSO framework that were most violated in the movie were (1) control environment, and (2) risk assessment.įirst, the lack of management supervision encouraged Nick to defraud Barings. However, he was arrested and sentenced to six-and-a-half years imprisonment in Singapore for unlawful trading and forgery. When the management at Barings bank started to figure out what happened, Nick and his wife tried to escape Singapore. At that time, his superiors were still oblivious about what was going on. The market continued to move against Nick and the amount of losses jumped to hundreds of millions dollars. Hence, he bought more futures contract to actually move the market in his favor. As Nick’s losses increased, he was still optimistic about being able to trade out of them. However, the trades he made only exacerbated the problem. As the movie progresses, Nick encountered a trading error and experienced a relatively small loss, so he tried to rectify it by trading futures under his own account. Nick’s responsibility was to trade futures and options on behalf of the bank’s clients. He then became a trader on the floor of Singapore International Monetary Exchange. Nick Leeson was played by the actor Ewan McGregor, who started working in Indonesia for Barings Bank. He brought the Barings Bank down, which was one of the most venerable financial institutions in England. The movie, Rogue Trader, narrates the true story of a man named Nick Leeson. Rogue Trader COSO Control Violations Short Essay