Wednesday, May 2, 2012

Chapter 3 VIGNETTE “Trading Scandal At Societe Generate”


1. What is yor reaction to this statement by Mr.Gumble?   

Answer:
            Peter Gumble wants to insult the statement of kerveil, because kerviel is a stunning example of a trader breaking the rules. Peter Gumble wants to stimulate the comments regarding the statements of kerviel, Peter  Gamble should verify the statement or to justify what the statement inslight by kerviel. Kerviel also look additional steps to cover his tracks by manipulating portions of the internal risk-control system with whhich he was unfamiliar.

2.    What explanation can these be for the failure of SocGens internal control system to detect kerviels transactions while eurex dtected many supicious transactions?

Answer:
            Kerviel was an expert in the proprietary information system SocGen used to book trades. He knew that while the risk-control department monitored the banks overall positions very closely, it did not verify the data that individual traders entered into the system. SocGen was brilliant in its achievement , the world leader in derivatives. Maybe when you are that good, you think you will never fail .


CASE STUDY CHAPTER#3
“Whistle-Blower Divides IT Security Community”

1.    Do you think that Mike Lynn acted in a responsible manner? Why or Why not?



Answer:
      Lynn began investigating a flaw in the Internet operating system(IOS) used by Cisco routers. Through reverse engineering, he discovered that it was possible to create a network worm that could propagate itself as it attacked and took control of routers across the Internet. Lynn’s discovery was momentous, and he decided that he had to speak out and let IT security professionals anf the public know about the danger.

2.    Do you think that Cisco and ISS were right to pull the plug on Lynn’s presentation at the Black Hat Conference? Why or Why not?

Answer:
      Why not Lynn had informed ISS and Cisco of his intentious to talk at a Black Hat conference—a popular meeting of computers hacker—and all three parties entered discussions with the conference managers to decide what information Lynn would be allowed to convey.

3.    Outline a more reasonable aproach toward communicating the flaw in the Cisco routers that would have led to the problem being promptly addresssed without stirring up animosity among the parties involved.

Answer:
      Rather than speak to a gathering of Cisco users, who would have responded to the revelation by installing Cisco’s patch and putting pressure on Cisco to find additional solutions, Lynn choose an audience that may well have included hackers who viewed the search for the flaw as a holy crusade. Black Hats are crakers who break into systems with malicious intent.

No comments:

Post a Comment