Case Study

Barings collapse (B): Failures in control and information use

16 pages
March 1996
Reference: IMD-1-0156

Designed to follow on from “The Barings Collapse (A)”, the case describes how Leeson concealed his unauthorised trading activities, how Barings blindly financed them and how the internal and external controls failed to identify the mounting losses. The case identifies areas of poor internal control inadequate computer systems and breakdown in information flow. The failure of internal and external audit and regulatory systems is also discussed.

Control, Information Flow, Audit, Banking
United Kingdom
Published Sources
© 1996
Available Languages
Related material
Teaching note
Case clearing houses
IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]


Research Information & Knowledge Hub for additional information on IMD publications

Discover our latest research
IMD's faculty and research teams publish articles, case studies, books and reports on a wide range of topics