Summary

The collapse of Lehman Brothers in 2008 is a pivotal event in financial history, often cited as the trigger for the global financial crisis. From the perspective of risk oversight, governance failures and crisis management, the Lehman collapse highlights profound breakdowns in corporate controls, risk assessment, and regulatory engagement. The case evidences weak risk culture and tone from the top, inadequate board oversight, flawed risk models and metrics, excessive leverage and reliance on short-term funding together with a number of crisis management failures.

The course examines the background and circumstances of the case, an analysis of the governance and risk management failures and the lessons to be learned for board members.

This course is one of several courses within the Professional Certificate in Risk Management. If you wish to achieve this award, you must complete this course along with all other mandatory courses in the associated learning plan.

Audience

Designed for C-Suite executives in financial services, including CEOs, Chief Risk Officers (CROs), Chief Compliance Officers (CCOs) and Board members including NEDs. Also aspiring executives and senior managers.

Course Objectives

• Understand the primary causes and governance failures leading to Lehman Brothers' collapse

• Identify the risk management and regulatory oversights that contributed to the financial crisis

• Analyse the role of the board in crisis preparedness, financial risk management, and ethical leadership

• Learn best practices for stress testing, liquidity management, and corporate governance

• Assess the regulatory changes implemented post-Lehman collapse and their implications for board responsibilities today

• Develop strategies to prevent similar failures in their organisations

• Explore how ethical decision-making and risk culture impact long-term financial stability

Course Structure

• Section 1: Introduction to the Lehman Brothers Collapse

• Section 2: Governance and Risk Management Failures

• Section 3: Case Study Aspects - Lehman Brothers Analysis

• Section 4: Risk Mitigation Strategies for Board Directors

• Summary

• Knowledge Evaluation

Duration & CPD Hours

This course should take you between 60 and 90 minutes, depending on your pace of learning. Additionally, this course is accredited by The CPD Certification Service and carries 1.5 CPD hours.