This report that provides our firm's point of view regarding risk management areas on which financial services firms should be focused and a framework for establishing or enhancing risk management practices.
The sudden failure of Lehman Brothers Holdings, Inc., in September 2008 is widely viewed as a watershed moment in the global financial crisis that began in the summer of 2007. The bankruptcy filing was not only abrupt; it was the largest in US history.
While a full assessment of the causes and effects of Lehman Brothers’ failure will be discussed and debated for years—if not decades—certain valuable lessons have already been learned from this event. Most notably, financial institutions should identify and implement risk mitigation measures to reduce the likelihood of future market, credit, and liquidity-based losses.