Case Study: Dealing with Risk and Uncertainty

Overview

Select a company of your choice, one that has been dealing with risk and uncertainty within the last six months, and write a 6–8 page paper in which you identify risk and identify comprehensive ways to should minimize its negative impacts and address risk while improving profitability.

Instructions

· Evaluate a company’s recent actions (within the last six months) dealing with risk and uncertainty.

· Offer advice for improving risk management.

· Examine an adverse selection problem your company is facing and recommend how it should minimize its negative impact on transactions.

· Determine the ways your company is dealing with the moral hazard problem and suggest best practices used in the industry to deal with it.

· Identify a principal-agent problem in your company and evaluate the tools it uses to align incentives and improve profitability.

· Examine the organizational structure of your company and suggest ways it can be changed to improve the overall profitability.

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