Subject category:
Ethics and Social Responsibility
Published by:
IBS Case Development Center
Length: 17 pages
Data source: Published sources
Abstract
National Australia Bank''s foreign exchange crisis not only cost the bank $360 million but also cast serious doubts on the governance culture in the bank. It caused the bank to rethink and reformulate its business strategies, its culture, and its approach to risk management in order to achieve sustainable growth. After several boardroom brawls and a major overhaul of the entire board, the company, under John Stewart, is now ready to rebuild its reputation and boost public confidence. This case provides an account of the developments that took place in National Australia Bank from January 2004 to May 2004. It helps to analyse the Forex scam along with several loopholes in the bank''s policies and systems that caused it to snowball. This case also helps to discuss the fallout of the scandal followed by the company''s handling of the total fiasco.
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Abstract
National Australia Bank''s foreign exchange crisis not only cost the bank $360 million but also cast serious doubts on the governance culture in the bank. It caused the bank to rethink and reformulate its business strategies, its culture, and its approach to risk management in order to achieve sustainable growth. After several boardroom brawls and a major overhaul of the entire board, the company, under John Stewart, is now ready to rebuild its reputation and boost public confidence. This case provides an account of the developments that took place in National Australia Bank from January 2004 to May 2004. It helps to analyse the Forex scam along with several loopholes in the bank''s policies and systems that caused it to snowball. This case also helps to discuss the fallout of the scandal followed by the company''s handling of the total fiasco.