Management responsibility for the failure

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Reference no: EM13747424

Risk management negligence within the financial services industry contributed to one of the most significant economic crisis in the recent history of the U.S. During this time, Lehman Brothers, a global financial services company, filed for bankruptcy protection. This created the largest bankruptcy ever within the financial services industry. In order to complete this assignment, you will need to search the Internet and Strayer databases for information related to Lehman Brothers' bankruptcy, the financial risk factors that contributed to the failure, and management's responsibility for the failure.

Write a five to six (5-6) page paper in which you:

  1. Based on the information you research related to Lehman Brothers, assess the factors that contributed to the financial failure of the firm, indicating how management failed to manage the risk related to each factor. Make a recommendation for how firms should manage these types of risks in the future. Provide support for your recommendation. 
  2. High-risk investments such as mortgage-backed securities, had a significant impact on the valuation of investments held with Lehman Brothers, yet many financial institutions continue to use these investments today. Assess the sufficiency of risk management techniques used by financial institutions today, indicating whether or not you believe the risk is appropriately managed to avoid a subsequent financial crisis. Provide support for your position. 
  3. Evaluate management's role within a financial investment firm for establishing proper risk management procedures for high-risk investments and the appropriate level of accountability for portfolio performance. Determine the consequences that should be enacted when Financial Firm Management fails to perform their fiduciary obligation to investors, indicating how these consequences should be implemented. Provide support for your response. 
  4. Given the recent debt crisis within the EURO zone of Europe, analyze the impact to the performance of foreign markets and recommend a strategy for financial firms to minimize investment risk in these markets. Provide support for your recommendation. 
  5. Evaluate the role of the Federal government, if any, related to the regulation of investments by financial institutions including the scope of the role, the authority and enforcement capability within the regulatory agency, the benefits, and consequences of regulation. Predict how the regulatory environment may change over the next five (5) years. Provide support for your prediction. 
  6. Use at least five (5) quality academic resources in this assignment.

Your assignment must follow these formatting requirements:

  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. 
  • Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

Reference no: EM13747424

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