Case Study: Dealing with Risk and Uncertainty
Overview
In this case study assignment, you will select a company or organization of your choice that has been dealing with risk and uncertainty within the last six months. Then you will determine solutions to organizational problems that take into account principles of risk management to improve operations and profitability.
Instructions
Write a 6–8 page paper in which you:
Evaluate a selected company’s or organization’s recent (within the last six months) actions dealing with risk and uncertainty.
Recommend advice for improving risk management and provide justification for the recommendation.
Examine an adverse selection problem the company/organization is facing, and recommend how it should minimize the negative impact of adverse selection on transactions.
Determine the ways the company/organization is dealing with the moral hazard problem, and suggest best practices used in the industry to deal with moral hazard.
Describe a principal-agent problem in the company/organization, and evaluate the tools the company/organization uses to align incentives and improve profitability/efficiency.
Examine the organizational structure of the company/organization, and suggest changes to improve the overall profitability/efficiency.
Explain why those changes would result in an improvement to profitability.