Assignment 2: Investment Risk Management Due Week 8 and worth 280 points

Risk management negligence within the nancial services industry contributed to one of the most signicant economic crisis in the recent history of the U.S. During this time, Lehman Brothers, a global nancial services company, led for bankruptcy protection. This created the largest bankruptcy ever within the nancial 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 nancial risk factors that contributed to the failure, and managements responsibility for the failure.

Write a ve 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 nancial failure of the rm, indicating how management failed to manage the risk related to each factor. Make a recommendation for how rms 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 signicant impact on the valuation of investments held with Lehman Brothers, yet many nancial institutions continue to use these investments today. Assess the suciency of risk management techniques used by nancial institutions today, indicating whether or not you believe the risk is appropriately managed to avoid a subsequent nancial crisis. Provide support for your position.

3. Evaluate managements role within a nancial investment rm 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 duciary 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 nancial rms 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 nancial institutions including the scope of the role, the authority and enforcement capability within the regulatory agency, the benets, and consequences of regulation. Predict how the regulatory environment may change over the next ve (5) years. Provide support for your prediction.

6. Use at least ve (5) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.