Someone at MBB told me that risks and next steps are very important in a case. I’m not sure if they were specifically referring to the recommendation, where this is standard practice, or to the whole case.
Should you constantly be referring to risks and next steps throughout the case? If so, how to do this in practice?
Hi there,
Q: Should you constantly be referring to risks and next steps throughout the case? If so, how to do this in practice?
After you have analyzed one area of the case (eg a graph), it is a good idea to propose the next steps related to that area. This is expected in particular in a candidate-led case.
The simples way to move to the next steps is to state your hypothesis and ask a question to the interviewer related to that.
Example:
From element XYZ of the graph, we can infer that the issue is ABC; from what shown, my hypothesis is that we could decrease ABC by renegotiating with the supplier. Do we have any information whether this is possible and if so, which would be the new rate we could get from the supplier, in order to calculate the possible savings?
The same could apply to risks, although a risk analysis is normally needed when you have all the elements to make a decision. As a consequence, it is more common in the conclusion.
Hope this helps,
Francesco
Hi there,
I think this is an interesting question that may be relevant for many people. I would be happy to share my thoughts on it:
If you would like a more detailed discussion on how to best prepare for your upcoming interviews, please don't hesitate to contact me directly.
Best,
Hagen
Hi there,
Let's divide MBB into M & BB:
Hope this helps a bit. Best of luck!
Moritz
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Typically part of the final recommendation at the end. This is not something you should have just for the sake of it.
Regards, Andi
Hi there,
They're talking about the final recommendation at the end of the case.
There are certain places where a clear insight is needed, and you may want to state a certain with that insight if needed. Of course, if it's candidate-led, you also do need to drive the case forward (a form of “next steps”, but in the context of asking for data/info).
Now, during the case you should keep in mind risks and next steps (if obvious ones appear) for the final rec, but please don't just keep repeating risks and next steps throughout the case!
This is about the closing of a case, when you give a recommendation.
I don't really like the term “risks”, because it leads candidate to make up stuff they didn't analyze. Think instead of caveats to your analysis and limitations to the ability to be 100% confident in the recommendation.
The next steps derive from those: what are the analysis you would do or considerations to have in mind given those caveats and limitations. I.e., what you would do next to make sure you would be able to develop a 100% bullet proof recomendation.
Businesses face a multitude of risks, both internal and external, that can impact their operations, financial stability, and reputation. Internal risks include poor management practices, operational inefficiencies, and inadequate financial controls. External risks may include economic downturns, natural disasters, and changes in government regulations or industry standards. Other risks may come from competition, cybersecurity threats, or supply chain disruptions. Businesses must identify, assess and manage these risks to minimize their impact and improve their chances of success. Failure to do so can result in significant financial losses, damage to reputation, and even business failure. Therefore, it is important for businesses to have a comprehensive risk management plan in place to mitigate potential risks and ensure long-term viability.
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