McDonald Investment Risk Management Paper 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: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. 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. 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. 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. 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. Use at least five (5) quality academic resources in this assignment.
Note: Wikipedia and other Websites do not qualify as academic
resources. Your assignment must follow these formatting requirements:This course requires use of new Strayer Writing Standards (SWS).
The format is different than other Strayer University courses. Please
take a moment to review the SWS documentation for details.Be typed, double spaced, using Times New Roman font (size 12), with
one-inch margins on all sides; citations and references must follow SWS
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. The specific course learning outcomes associated with this assignment are:Explain commonly practiced risk management techniques. Use technology and information resources to research issues in financial risk analysis. Write clearly and concisely about financial risk analysis using proper writing mechanics.
