Chinese Wall

Knowledge Center



Summary, forum, best practices, expert tips and information sources.

8 items • 21.899 visits


Summary

What is a Chinese Wall? Meaning.

A Chinese Wall is a metaphor for a virtual barrier to the flow of information between two different functions of an organization, in order to prevent possible conflict of interest. Typically, the wall is purely conceptual, although sometimes functions may be divided by physical barriers (areas of a building, for example) as well as policies.
 

Such walls were supposed to exist between the auditing function and the consulting divisions of big auditing firms. However the Enron/Anderson Consulting case showed that these walls did not work well here.


In banking, a Chinese wall is supposed to exist between the M&A function in the investment bank section and the brokerage function, advising clients about investments. Again, passing information through the wall, although forbidden, has occurred, because it can be extremely lucrative. During the dot.com rush passing this kind of information through the "wall" was not unusual and was a major cause of the stock crash in 2000.


Other (better) solutions to prevent conflicts of interest are to split certain companies, legislation (Sarbanes-Oxley), more attention for business ethics.


Special Interest Group

Join

Chinese Wall Special Interest Group.



Special Interest Group (9 members)

Forum

New Topic

Forum about the Chinese Wall.


🔥 NEW How to a create Chinese Wall Register?
How to create a register of Chinese Walls? Or is there already a source of such virtual barriers to the flow of informat (...)
5
 

Start a new forum topic about the Chinese Wall. More info.

 

Best Practices

Sign up

The top-rated topics about the Chinese Wall. Here you will find the most valuable ideas and practical suggestions.


Expert Tips

Sign up

Advanced insights about the Chinese Wall. Here you will find professional advices by experts.


Information Sources

Sign up

Various sources of information regarding the Chinese Wall. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.



Research Links

Sign up

Automatically jump to further useful sources regarding the Chinese Wall.


News Videos Presentations Books More

News

Videos

Presentations

Books

More


Compare with: Initial Public Offering  |  Corporate Governance  |  Asset Management  |  Whisper Number  |  Ring Fencing

Special Interest Group

Do you have a keen interest in the Chinese Wall? Sign up for free

Notify your students

Copy this into your study materials:

and add a hyperlink to:

Link to this knowledge center

Copy this HTML code to your web site:

 
 

Return to Management Hub: Change & Organization  |  Communication & Skills  |  Ethics & Responsibility  |  Finance & Investing  |  Knowledge & Intangibles


More on Management  |  Return to Management Dictionary

 

This ends our Chinese Wall summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2021 12manage - The Executive Fast Track. V15.8 - Last updated: 24-7-2021. All names of their owners.