ASE STUDY 2: Case Analysis of Risk, Uncertainty and Managing Incentives
Due Week 9 – Worth 310 points
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 (within the last year) actions dealing with risk and uncertainty.
- Offer advice for improving risk management.
- For the company, you selected examine an adverse selection problem and recommend how it should minimize its negative impact on transactions.
- For the company, you selected to determine the ways in which it is dealing with the moral hazard problem and suggest best practices used in the industry to deal with it.
- For the company, you selected to identify a principal-agent problem and evaluate the tools it uses to align incentives and improve profitability.
- For the company, you selected to examine the organizational structure and suggests ways it can be changed to improve the overall profitability.
- Use at least five (5) quality academic resources in this assignment.