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Overview
Risk management negligence within the financial services industry contributed to one of the most significant economic crises in the recent history of the United States. 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. 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. You will use your finance/budgeting and forecasting skills to complete a risk management assessment.
Instructions
Write a 4–5 page risk management assessment in which you:
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 response.
Assess the sufficiency of risk management techniques used by financial institutions today, indicating whether you believe the risk is appropriately managed to avoid a subsequent financial crisis. Provide support for your response.
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, including the consequences that should be implemented when Financial Firm Management fails to perform their fiduciary obligation to investors. Provide support for your response.
Analyze the impact of the recent supply chain crisis on the performance of foreign markets and recommend a strategy for financial firms to minimize investment risk in these markets. Provide support for your response.
Evaluate the role of the Federal government in 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, and provide a prediction of how the regulatory environment may change over the next five years. Provide support for your response.
Use at least five quality academic resources in this assignment. Note: Wikipedia and other websites do not qualify as academic resources.
This course requires the use of Strayer Writing Standards (SWS). The library is your home for SWS assistance, including citations and formatting. Please refer to the Library site for all support. Check with your professor for any additional instructions.
The specific course learning outcomes associated with this assignment are:
Develop risk management strategies for a financial firm, including the role of management, the federal government, and strategies for foreign markets.
View RubricWeek 7 Assignment – Investment Risk ManagementWeek 7 Assignment – Investment Risk ManagementCriteriaRatingsPtsAssess the factors that contributed to the financial failure of the firm, indicating how management failed to manage the risk related to each factor and make a recommendation for how firms should manage these types of risks in the future. Provide support for your response.33 to >29.7 ptsExemplaryAssessed the factors that contributed to the financial failure of the firm, indicating how management failed to manage the risk related to each factor and made a recommendation for how firms should manage these types of risks in the future. Provided support for your response.29.7 to >26.4 ptsCompetentAssessed the factors that contributed to the financial failure of the firm, indicating how management failed to manage the risk related to each factor and made a recommendation for how firms should manage these types of risks in the future. Did not provide support for your response.26.4 to >23.1 ptsSatisfactoryAssessed the factors that contributed to the financial failure of the firm, but only did one of the following: (1) indicated how management failed to manage the risk related to each factor; (2) made a recommendation for how firms should manage these types of risks in the future. Provided support for your response.23.1 to >19.8 ptsNeeds ImprovementIdentified the factors that contributed to the financial failure of the firm but did not indicate how management failed to manage the risk related to each factor and did not make a recommendation for how firms should manage these types of risks in the future. Did not provide support for your response.19.8 to >0 ptsUnacceptableDid not submit or did not assess the factors that contributed to the financial failure of the firm, indicating how management failed to manage the risk related to each factor and make a recommendation for how firms should manage these types of risks in the future./ 33 ptsAssess the sufficiency of risk management techniques used by financial institutions today, indicating whether you believe the risk is appropriately managed to avoid a subsequent financial crisis. Provide support for your response.33 to >29.7 ptsExemplaryAssessed the sufficiency of risk management techniques used by financial institutions today, indicating whether you believe the risk is appropriately managed to avoid a subsequent financial crisis. Provided support for your response.29.7 to >26.4 ptsCompetentAssessed the sufficiency of risk management techniques used by financial institutions today, indicating whether you believe the risk is appropriately managed to avoid a subsequent financial crisis. Did not provide support for your response.26.4 to >23.1 ptsSatisfactoryAssessed the sufficiency of risk management techniques used by financial institutions today but did not indicate whether you believe the risk is appropriately managed to avoid a subsequent financial crisis. Provided support for your response.23.1 to >19.8 ptsNeeds ImprovementIdentified the risk management techniques used by financial institutions today but did not assess their sufficiency and did not indicate whether you believe the risk is appropriately managed to avoid a subsequent financial crisis. Did not provide support for your response.19.8 to >0 ptsUnacceptableDid not answer or did not assess the sufficiency of risk management techniques used by financial institutions today, indicating whether you believe the risk is appropriately managed to avoid a subsequent financial crisis./ 33 ptsEvaluate 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, including the consequences that should be implemented when Financial Firm Management fails to perform their fiduciary obligation to investors. Provide support for your response.33 to >29.7 ptsExemplaryEvaluated 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, including the consequences that should be implemented when Financial Firm Management fails to perform their fiduciary obligation to investors. Provided support for your response.29.7 to >26.4 ptsCompetentEvaluated 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, including the consequences that should be implemented when Financial Firm Management fails to perform their fiduciary obligation to investors. Did not provide support for your response.26.4 to >23.1 ptsSatisfactoryEvaluated 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, but failed to include the consequences that should be implemented when Financial Firm Management fails to perform their fiduciary obligation to investors. Provided support for your response.23.1 to >19.8 ptsNeeds ImprovementDescribed 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. Did not include the consequences that should be implemented when Financial Firm Management fails to perform their fiduciary obligation to investors. Did not provide support for your response.19.8 to >0 ptsUnacceptableDid not submit or did not 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, including the consequences that should be implemented when Financial Firm Management fails to perform their fiduciary obligation to investors./ 33 ptsAnalyze the impact of the recent supply chain crisis on the performance of foreign markets and recommend a strategy for financial firms to minimize investment risk in these markets. Provide support for your response.24.75 to >22.27 ptsExemplaryAnalyzed the impact of the recent supply chain crisis on the performance of foreign markets and recommended a strategy for financial firms to minimize investment risk in these markets. Provided support for your response.22.27 to >19.8 ptsCompetentAnalyzed the impact of the recent supply chain crisis on the performance of foreign markets and recommended a strategy for financial firms to minimize investment risk in these markets. Did not provide support for your response.19.8 to >17.32 ptsSatisfactoryAnalyzed the impact of the recent supply chain crisis on the performance of foreign markets but did not recommended a strategy for financial firms to minimize investment risk in these markets. Provided support for your response.17.32 to >14.85 ptsNeeds ImprovementDescribed the impact the supply chain crisis had on foreign markets but did not analyze it. Did not recommend a strategy for financial firms to minimize investment risk in these markets. Did not provide support for your response.14.85 to >0 ptsUnacceptableDid not submit or did not analyze the impact of the recent supply chain crisis on the performance of foreign markets and recommend a strategy for financial firms to minimize investment risk in these markets./ 24.75 ptsEvaluate the role of the Federal government in 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 and provide a prediction of how the regulatory environment may change over the next five years. Provide support for your response.24.75 to >22.27 ptsExemplaryEvaluated the role of the Federal government in 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 and provided a prediction of how the regulatory environment may change over the next five years. Provided support for your response.22.27 to >19.8 ptsCompetentEvaluated the role of the Federal government in 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 and provided a prediction of how the regulatory environment may change over the next five years. Did not provide support for your response.19.8 to >17.32 ptsSatisfactoryEvaluated the role of the Federal government in the regulation of investments by financial institutions. Included at least two of the following three items in the evaluation: (1) the scope of the role, (2) the authority and enforcement capability within the regulatory agency, (3) the benefits and consequences of regulation and provided a prediction of how the regulatory environment may change over the next five years. Provided support for your response.17.32 to >14.85 ptsNeeds ImprovementEvaluated the role of the Federal government in the regulation of investments by financial institutions. Included at least one of the following three items in the evaluation: (1) the scope of the role, (2) the authority and enforcement capability within the regulatory agency, (3) the benefits and consequences of regulation. Did not provide a prediction of how the regulatory environment may change over the next five years. Provided limited or no support for your response.14.85 to >0 ptsUnacceptableDid not submit or did not evaluate the role of the Federal government in 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 and provide a prediction of how the regulatory environment may change over the next five years./ 24.75 ptsUse at least five quality academic resources in this assignment.8.25 to >7.42 ptsExemplaryUsed at least five quality academic resources in this assignment. All references are high-quality choices.7.42 to >6.6 ptsCompetentMeets the required number of references; some references are poor-quality choices.6.6 to >5.77 ptsSatisfactoryDoes not meet the required number of references; some references are poor-quality choices.5.77 to >4.95 ptsNeeds ImprovementDoes not meet the required number of references; all references are poor-quality choices.4.95 to >0 ptsUnacceptableNo references provided./ 8.25 ptsClarity, writing mechanics, and SWS formatting requirements.8.25 to >7.42 ptsExemplary0–2 errors present.7.42 to >6.6 ptsCompetent3–4 errors present.6.6 to >5.77 ptsSatisfactory5–6 errors present.5.77 to >4.95 ptsNeeds Improvement7–8 errors present.4.95 to >0 ptsUnacceptableMore than 8 errors present./ 8.25 ptsTotal Points: 0Â