Homework: Managerial Economics
Case Study: Dealing with Risk and Uncertainty
Overview
Select a company of your choice, one that has been dealing with risk and uncertainty within the last six months, and write a 6 to 8 pages paper in which you identify risk and identify comprehensive ways to should minimize its negative impacts and address risk while improving profitability.
Instructions
1. Evaluate a company's recent actions (within the last six months) dealing with risk and uncertainty.
2. Offer advice for improving risk management.
3. Examine an adverse selection problem your company is facing and recommend how it should minimize its negative impact on transactions.
4. Determine the ways your company is dealing with the moral hazard problem and suggest best practices used in the industry to deal with it.
5. Identify a principal-agent problem in your company and evaluate the tools it uses to align incentives and improve profitability.
6. Examine the organizational structure of your company and suggest ways it can be changed to improve the overall profitability.
Format your homework according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.
The specific course learning outcome associated with this homework is:
1. Determine solutions to organizational problems that take into account principles of risk management to improve operations and profitability.