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1) Based on your assessment of the elements of the risk management system at Lehman, analyze how the firm managed its risk

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1) Based on your assessment of the elements of the risk management system at Lehman, analyze how the firm managed its risk.

2. How did Lehman calculate risk appetite limit and what is your assessment of this procedure?

3. Identify red flags and early warning signals. Why did Lehman’s management ignore them?

4. Comment on the trade suggested to Matt Rojas and how it could affect Lehman’s risk exposure.