SWOT Analysis

The following are the internal and external factors that affect the Bernard Madoff Investment
Securities’ operation.

STRENGTHS

 Madoff has a good reputation. He was very qualified in the understanding and analysis of
the complex financial securities. He was able to Madoff was able to exploit the trust
investors have vested upon him because of his high level of professional qualification and
reputation in the industry.
 Usage of extra-ordinary activities that other could not comprehend. Madoff’s team used
to transfer their external risks in a way that it becomes impossible for the regulator
authorities to track down any suspicious activities.
 The company’s good standing in the past year made them to be known until the present
years.

WEAKNESSES

 Due to the lack of integrity, Madoff and his team were able to commit unethical activities
to keep the operation ongoing and to earn large amount of money.
 Not fully disclosing relevant information that would help auditors to detect the ongoing
fraud.
 The continuous need for money lead them to commit suspicious activities
 Low risk and high returns on investment

OPPORTUNITIES

 The period of the establishment of the said investment company was strong therefore
many available opportunities are entering to the company.

THREATHS

 There was a downturn in the United States during that time

 Suspicion among competitors who couldn’t match rate of returns