3. The Basel Committee recently reported that An informal survey highlights the growing realization of the significance of risk such as operational risk which have been at the heart of some important banking problems in recent years." Identify the risks and lessons learnt associated with the Baring Bank case in February 1995 that a derivative trader, Nick Leeson, amassed unreported losses over two years and eventually Barings went bankrupt. [Total: 26 marks] 3. The Basel Committee recently reported that An informal survey highlights the growing realization of the significance of risk such as operational risk which have been at the heart of some important banking problems in recent years." Identify the risks and lessons learnt associated with the Baring Bank case in February 1995 that a derivative trader, Nick Leeson, amassed unreported losses over two years and eventually Barings went bankrupt. [Total: 26 marks]