Incident: Goldman Sachs Fails to Record Trading Phone Calls Due to Software Problem

Published Date: 2019-11-26

Postmortem Analysis
Timeline 1. The software failure incident happened around three weeks in 2014 [91968]. Therefore, the software failure incident occurred in 2014.
System 1. Recording software system - The software problem that occurred at Goldman Sachs resulted in the failure to record the phone lines of trading and sales desks for around three weeks in 2014 [91968].
Responsible Organization 1. Goldman Sachs - The software failure incident was caused by a software problem at Goldman Sachs, which resulted in the bank failing to record the phone lines of trading and sales desks for around three weeks in 2014 [91968].
Impacted Organization 1. Goldman Sachs [91968]
Software Causes 1. The software failure incident was caused by a software problem that resulted in Goldman Sachs failing to record the phone lines of trading and sales desks for around three weeks in 2014 [91968].
Non-software Causes 1. Failure to make and keep certain audio recordings in relation to swap trading business [91968].
Impacts 1. The software failure incident led to Goldman Sachs being ordered to pay $1 million by the U.S. Commodity Futures Trading Commission (CFTC) for failing to make and keep certain audio recordings, highlighting a financial impact on the company [91968].
Preventions 1. Implementing regular software testing procedures to ensure the functionality and reliability of recording systems [91968]. 2. Conducting periodic audits or checks on the recording systems to verify that they are capturing the required data accurately [91968]. 3. Establishing robust monitoring mechanisms to detect any anomalies or failures in the recording process promptly [91968].
Fixes 1. Implementing regular software testing procedures to ensure proper functioning of recording systems [91968]. 2. Conducting thorough audits of recording systems to identify and address any potential software problems [91968]. 3. Enhancing monitoring and alert systems to promptly detect any failures in recording functionalities [91968].
References 1. U.S. Commodity Futures Trading Commission (CFTC) [91968] 2. Goldman Sachs [91968]

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization (a) The software failure incident related to Goldman Sachs failing to record certain audio calls due to a software problem in 2014. This incident occurred within the same organization [91968].
Phase (Design/Operation) design (a) The software failure incident in the article was related to the design phase. The failure occurred due to a software problem that resulted in Goldman Sachs failing to record the phone lines of trading and sales desks for around three weeks in 2014. This issue was attributed to a design flaw in the system that prevented the recording of audio calls, ultimately leading to the failure to comply with regulatory requirements [91968]. (b) There is no information in the article indicating that the software failure incident was related to the operation phase.
Boundary (Internal/External) within_system (a) The software failure incident mentioned in Article 91968 was within_system. The article states that a software problem within Goldman Sachs resulted in the bank failing to record the phone lines of trading and sales desks for around three weeks in 2014. This internal software issue led to the failure to make and keep certain audio recordings, which was a requirement by the U.S. Commodity Futures Trading Commission (CFTC) [91968].
Nature (Human/Non-human) non-human_actions (a) The software failure incident in the article was due to non-human actions. The U.S. Commodity Futures Trading Commission (CFTC) ordered Goldman Sachs to pay $1 million for failing to make and keep certain audio recordings because of a software problem that resulted in the bank failing to record the phone lines of trading and sales desks for around three weeks in 2014. This problem was not intentionally introduced by human actions but was a result of a software issue [91968].
Dimension (Hardware/Software) software (a) The software failure incident mentioned in the article was due to a software problem that resulted in Goldman Sachs failing to record the phone lines of trading and sales desks for around three weeks in 2014. This indicates that the failure originated in the software rather than hardware [91968].
Objective (Malicious/Non-malicious) non-malicious (a) The software failure incident mentioned in Article #91968 was non-malicious. The failure occurred due to a software problem at Goldman Sachs, which resulted in the bank failing to record the phone lines of trading and sales desks for around three weeks in 2014. This failure was not attributed to malicious intent but rather to a technical issue within the software system [91968].
Intent (Poor/Accidental Decisions) poor_decisions, accidental_decisions The software failure incident at Goldman Sachs, as reported in Article #91968, was due to a software problem that resulted in the bank failing to record the phone lines of trading and sales desks for around three weeks in 2014. This incident could be categorized under both options: (a) poor_decisions: The failure could be attributed to poor decisions related to the software implementation or maintenance that led to the inability to record the necessary audio calls. (b) accidental_decisions: The failure could also be attributed to accidental decisions or mistakes made during the software operation or configuration that resulted in the lack of audio recordings. Therefore, based on the information provided in the article, the software failure incident at Goldman Sachs could be associated with both poor decisions and accidental decisions.
Capability (Incompetence/Accidental) accidental (a) The software failure incident mentioned in Article 91968 was not attributed to development incompetence. The failure was specifically linked to a software problem that resulted in Goldman Sachs failing to record phone lines of trading and sales desks for around three weeks in 2014. This indicates a technical issue rather than a failure due to incompetence in development. (b) The software failure incident in Article 91968 was more aligned with an accidental cause. The failure was described as a software problem that led to the bank's failure to record certain audio calls, which came to light when the bank was unable to provide the recordings during an investigation by the CFTC. This suggests that the failure was unintentional and not deliberately caused by human error or incompetence.
Duration temporary The software failure incident mentioned in Article #91968 was temporary. It occurred for around three weeks in 2014 when a software problem at Goldman Sachs resulted in the bank failing to record the phone lines of trading and sales desks. This temporary failure led to the bank being unable to provide audio calls when requested by the CFTC during a separate investigation [91968].
Behaviour crash (a) crash: The software failure incident in the article was a crash where the system lost state and did not perform its intended functions. The article mentions that a software problem resulted in the bank failing to record the phone lines of trading and sales desks for around three weeks in 2014, leading to the system not being able to provide audio calls when asked by the CFTC [Article 91968].

IoT System Layer

Layer Option Rationale
Perception None None
Communication None None
Application None None

Other Details

Category Option Rationale
Consequence property The consequence of the software failure incident reported in the article was related to the property. The software problem at Goldman Sachs resulted in the bank failing to record the phone lines of trading and sales desks for around three weeks in 2014. This failure impacted the bank's ability to provide audio calls when asked by the CFTC in relation to a separate investigation by the regulator [91968].
Domain finance The software failure incident reported in Article 91968 was related to the finance industry. The incident involved Goldman Sachs failing to record the phone lines of trading and sales desks due to a software problem, which led to the bank being unable to provide audio calls as requested by the U.S. Commodity Futures Trading Commission (CFTC) during an investigation related to its swap trading business [91968].

Sources

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