Case Study
Select a company of your choice, any company but Southwest Airlines, and write a six to eight (6-8) page paper in which you:
Evaluate a company’s recent (with in the last year) actions 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. Determinethewaysyourcompanyisdealingwiththemoralhazardproblem 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 suggests ways it can be changed to improve the overall profitability.
Use at least five (5) quality academic resources in this assignment. Note: One of your references regarding your should have been published within the last 6 months. Note: Wikipedia does not qualify as an academic resource.
assignment must follow these formatting requirements:
Be typed, double spaced, using Times New Roman font (size 12), with one- inch margins on all sides; citations and references must follow APA or school- specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
Solution Preview
Introduction
Risk can be defined as the practicability of facing a loss or injury. The probability of occurrence of such loss or the damage is usually a subject to be covered by an insurance contract, in life one should always be ready for any eventualities since no one is risk-proof and once in a while plans don’t usually go according to plan and the difference between success and failure is how we are well prepared should such eventualities occur. One should make careful consideration to determine if a risk is acceptable or if it is to be avoided.
(1,822 words)