Are risks and next step a must in case interview? For next step, should we just follow the risk and propose next step accordingly?
Are risks and next step a must in case interview?
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Hi,
It really depends on whether you have anything else to explore, that is more important than risks. The typical structure is the following:
- What was the objective
- Your recommendation
- Arguments why the recommendation is valid (2-4 arguments) with the supporting numbers
- Additional things you would like to explore. In the order of priority:
- Things you still need to explore / data you need to get in order to provide a valid recommendation (Very typical for McKinsey cases where the interviewer guides you and interrupts in the middle of the case to provide a conclusion
- Things you've slightly covered during the case but have not come to a particular measurable solution or were not the part of the original objective (e.g. alternative growth options or some questions on creativity)
- Risks
- Next steps
In my view, the last part (4th) of your recommendation should not be bigger than the rest of the recommendation (1-3), thus I will talk about risks if I have perfectly covered everything else in the case.
Example:
- Our objectives were to understand why the profit is declining by X and how to bring the profit back within one year (Don't forget that your objective should be measurable in terms of money / other metric and time)
- According to the analysis we've done so far, my recommendation is to shut down the division A and to concentrate on the divisions b/c if we want to increase the profit, and there is a number of reasons for that.. (Remember that your arguments should include numbers).
- You provide the arguments a) First of all, problems in Division A are the major driver of the decline in profits - 90% of the decline in profits refer to Division A. b) Secondly, the decline is driven by the contracting market size that is shrinking at xx percent and is not expected to improve in the near future. c) Finally....
- Additionally, I would like to check the option of seeling the division A products abroad. We have discussed several potential markets to enter but still have to check whether it will be feasible for us financially
Best!
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Hi,
In general, yes you should state your risks/concerns. This can also be additional considerations (i.e. things we haven't thought of/investigated properly yet). Make sure that next steps mitigate/address your risks. Also, feel free to use different terminology than just "risks/next steps". I.e. you can say "There are a few things that might pose some challenges/roadblocks".
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Hi Anonymous,
I would always suggest to have risks and next steps as part of your approach. Next steps may not just be related to risks, but also to everything that was related to your initial structure that was not covered during the case – usually you never cover everything that was present there.
Best,
Francesco
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Hello there,
Yes, it is advisable to includes both elements at every case,as it displays your comprehensive thinking trait and willingness to acknowledge that not evey single aspects have been taken into account due to time restrictions and scope constraints.
Next steps should include risks assessment process, additional analysis / steps needed to further support the recommendation, as well as implementation / execution steps.
Hope it helps.
Kind regards,
Nathan
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I recommend to always include them in the recommendation. As next steps, you can propose mitigation initiatives of the risks just mentioned or deep-dive of parts not well discussed during the case resolution.
Best,
Antonello
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Hello!
For me it´s an bsolute YES.
First, in the issue tree, and later, in the wrap up.
Cheers,
Clara
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A strong interviewee would include both when they do the case summary
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Hello,
I always suggest to mention risk&opportunities in your framework and to decide later in the case how much you want to explode that bucket, based on the time that is left and the importance for the specific case.
They are really important to be included in the final recommendation in order to mitigate your answer and to propose interesting "next step analysis".
Hope it helps,
Luca
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Absolutely and make sure you brainstorm a bit on how to overcome such issues as well!
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