Risk & Next Step - How to go through when sharing the case structure?

Hi there,

If you can already think about risk and next steps during the structuring phase, I suggest do mention about it upfront when you present the sturcture, and go to the next level/layer by laying out a few examples that are relevant to the case. E.g. if it is about M&A, you can think about whether there could be risk in culture integration, in anti-competition regulation, in funding etc.

Doing this upfront can assure the interviewer that you actualy have the ability to see beyond the obvious/immediate. If you leave it to later, you might run the risk of being carried away in the conversations and forget about it.

You don't need to deep dive when you first present the structure, but do make a few points that seem relevant to the case. This way the interviewer knows you are not just saying it for the sake of checking the box, but you actually have an idea of the potential implications.

Cheers,

Emily

(edited)

You are not supposed to brainstorm risk and the next steps at the beginning of the case. I recommend including it in the synthesis in the middle of it, after an exhibit, when you make a decision or in the final recommendation.

Best,
Antonello

Please don't include it as its own bucket.

There's two approaches here:

First, as Vlad mentioned, you can incorporate it into an existing bucket. Implementation is a great example (as its riddled with risks).

Second you can simply incorporate it as you speak. I.e. If we're looking at market entry, you may have a bucket for the attractiveness of the Market as a whole, Our company in this market (how it might far), and then how to do it.

For #1 "Market as a whole", obviously you mention any environmental, economic, or political risks. Anything possibly negative about the market is inherently a risk

For #2 "Our company/product", If we've never expanded before that's a risk. If we're low on $ that's a risk. If our product is totally new/untested, that's a risk. And so on and so forth.

For #3 "How", an acquisition is risky because of $ and integration, organic growth is risky because of time and lack of local market knowledge, a partnership is risky because of lack of control.

Make sense? When analysing any problem the risks are inherent in your analysis...they're not a seperate bucket!

Hi,

I would not implement risks as a separate bucket.

However, I would incorporate risks into the other significant bucket. For example, in the M&A PE case, my last bucket will be the Feasibility of exit. And I will look at:

• Are we achieving fund objectives (returns)
• Exit time
• Required investments
• Availability of buyers
• Risks

Best