Question about risks and next steps?

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,

Let's divide MBB into M & BB:

• BB: This is a good idea for candidate led cases, because you're only scratching the surface during the 40min interview and it shows leadership and maturity to think beyond that (even if it's all just role-play). Rounding up your first rough conclusion by suggesting risks and next steps is what consultants typically do in projects as well, where they quickly establish hypotheses and ‘Day-1’ answers and move on from there.
• M: In interviewer-led cases, you're going to be asked a series of very specific questions. The cases typically ends with your answer to one of those questions, and not an overall summary. This surprises a lot of candidates but is very normal for McKinsey. Hence, unless specifically asked for a conclusion, which goes ‘against’ protocol, don't force it and follow the interviewer´s lead.

Hope this helps a bit. Best of luck!

Moritz

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:

• First of all, I think you are overthinking what has been said by this one acquaintance working at one of the MBB companies. As such, I would highly advise you to become more independent of all the rumors when preparing as this would severely distract you.
• Most probably, he/she was talking about the final recommendation where it is certainly great if you can discuss any risks that go along with the endeavor at hand and lay out the necessary next steps.
• However, also throughout the case study, and this applies to both interviewer-led and interviewee-led case studies, I would highly advise you to propose the next step of the analysis since this is one of the key aspects of case leadership.

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,

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!

Typically part of the final recommendation at the end. This is not something you should have just for the sake of it.

Regards, Andi

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.