MGT 4202 Project Risk Management

Individual Assignment #1

INDIVIDUAL ASSIGNMENT #1 (10 points]

The questions in this group assignment relate to the Bernie Madoff case study. This is based on Module 3 and 4, so think strategy and Risk Identification.

Part 1 Good Ol Bernie

Question 1 (1.5 points)

What is Bernies attitude towards risk?

Question 2 (1.5 points)

Identify 5 sources of risks for Bernie (use your judgment here, the slides provide potential sources of risk, but they may not all be within your slides).

Question 3 (5 points)

Identify 5 risks that would be on Bernies risk register and include the risk level for each. Try here to be as close as possible to a final risk statement for each risk.

Part 2 The Investors

Question 4 (2 points)

People invest money in various types of deposits, stocks, companies, etc with the intention of increasing their capital. What were the signals to the investors that there was a good potential to make money by investing Bernard L. Madoff Investment Securities LLC?

Were there signals suggesting otherwise?

Grading

• Accuracy of the answer: a correct answer is provided.
• Clear and concise sentences: message is conveyed in a clear manner and avoids creating confusion.
• Language: use of risk terms, use of precise risk language, clarity in communication, effective description aiding project management.
• Use the proper concepts of assessing risk level.