Assignment 2: investment risk

management
Homework Essay Help
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 six to seven (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 six (6) 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.