Enterprise Risk Management at Lehman Brothers
|
|
ICMR HOME | Case Studies Collection
Case Details:
Case Code : ERMT-016
Case Length : 09 Pages
Period : 2003
Pub Date : 2003
Teaching Note :Not Available
Organization : Lehman Brothers
Industry : Banking
Countries : US, UK
To download Enterprise Risk Management at Lehman Brothers case study
(Case Code: ERMT-016) click on the button below, and select the case from the list of available cases:
Price:
For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra
» Enterprise Risk Management Case Studies
» Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Case Studies by Area
» Case Studies by Industry
» Case Studies by Company
Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Chat with us
Please leave your feedback
|
|
<< Previous
Excerpts
Overview of Risks
|
As a leading, global investment banking company, risk was an
inherent part of Lehman's businesses. Global financial markets were prone to
uncertainty and exposed participants to a variety of risks.
Lehman attempted to reduce risk through the diversification of its businesses,
counterparties and activities in geographic regions. Lehman also allocated the
usage of capital to each of its businesses, established trading limits and set
credit limits for individual counterparties, and regions/sectors...
|
|
Organizational Structure
Lehman's overall risk management policy was established at the Office of the
Chairman and began with The Capital Markets Committee, which consisted of the
Chief Executive Officer, other members of the Company's Executive Committee, the
Global Head of Risk, the Chief Economist and Strategist as well as various other
business heads...
Credit Risk
Lehman's Credit Risk Management Department (CRM) had global responsibility for
implementing the company's overall credit risk management framework. CRM managed
the credit exposure related to trading activities by giving initial credit
approval for counter-parties and by establishing credit limits by counterparty,
country and industry group...
|
|
Market Risk
The Market Risk Management Department (MRM) had global
responsibility for implementing Lehman's overall market risk
management framework. It was responsible for the preparation and
dissemination of risk reports, developing and implementing the firm
wide risk management guidelines, and evaluating adherence to these
guidelines...
Risk Measurement
For purposes of Securities and Exchange Commission (“SEC”) risk
disclosure requirements, Lehman disclosed an entity-wide
value-at-risk for virtually all of its trading activities. In
general, Lehman's value-at-risk measured potential loss of trading
revenues at a given confidence level over a specified time
horizon... |
Exhibits
Exhibit I: Lehman: Business Segment Financial Highlights
Exhibit II: Lehman: Segment Results
Exhibit III: Value-At-Risk Information
|
|
