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      Financial RiskRemove Financial Risk →

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      • October 1998 (Revised May 2001)
      • Case

      Preview Travel (A)

      By: William A. Sahlman, Nicole Tempest, Daniel H Case III and Robert Keller
      Preview Travel was a leader in the online travel industry, having generated $80 million in bookings in 1997 and growing at a 34% compound annual growth rate per quarter. This case describes the evolution of Preview Travel's business plan and financing strategy and... View Details
      Keywords: Risk and Uncertainty; Business Model; Initial Public Offering; Valuation; Internet and the Web; Business Plan; Capital; Financial Strategy; Travel Industry; United States
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      Sahlman, William A., Nicole Tempest, Daniel H Case III, and Robert Keller. "Preview Travel (A)." Harvard Business School Case 899-085, October 1998. (Revised May 2001.)
      • October 1998 (Revised April 2001)
      • Case

      Preview Travel (B)

      By: William A. Sahlman and Nicole Tempest
      Supplements the (A) case. View Details
      Keywords: Risk and Uncertainty; Business Model; Initial Public Offering; Internet and the Web; Business Plan; Capital; Financial Strategy; Travel Industry; United States
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      Sahlman, William A., and Nicole Tempest. "Preview Travel (B)." Harvard Business School Case 899-086, October 1998. (Revised April 2001.)
      • October 1998 (Revised November 1999)
      • Case

      Farallon Capital Management: Risk Arbitrage (A)

      By: Andre F. Perold and Robert Howard
      Farallon Capital Management, an investment firm that specializes in risk arbitrage, has taken significant long and short positions in MCI Communications and British Telecommunications, respectively, in the belief that the proposed merger of these firms will be... View Details
      Keywords: Mergers and Acquisitions; Capital; Capital Markets; Investment; Management; Risk Management; Strategy; Financial Services Industry
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      Perold, Andre F., and Robert Howard. "Farallon Capital Management: Risk Arbitrage (A)." Harvard Business School Case 299-020, October 1998. (Revised November 1999.)
      • October 1998
      • Case

      Farallon Capital Management: Risk Arbitrage (B)

      By: Andre F. Perold and Robert Howard
      Farallon Capital Management, an investment firm that specializes in risk arbitrage, has taken significant long and short positions in MCI Communications and British Telecommunications, respectively, in the belief that the proposed merger of these firms will be... View Details
      Keywords: Mergers and Acquisitions; Capital Markets; Investment; Risk Management; Strategy; Financial Services Industry
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      Perold, Andre F., and Robert Howard. "Farallon Capital Management: Risk Arbitrage (B)." Harvard Business School Case 299-021, October 1998.
      • October 1998
      • Case

      Farallon Capital Management: Risk Arbitrage (C)

      By: Andre F. Perold and Robert Howard
      Farallon Capital Management, an investment firm that specializes in risk arbitrage, has taken significant long and short positions in MCI Communications and British Telecommunications, respectively, in the belief that the proposed merger of these firms will be... View Details
      Keywords: Capital Markets; Equity; Mergers and Acquisitions; Financial Institutions; Risk Management; Investment Funds; Financial Services Industry
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      Perold, Andre F., and Robert Howard. "Farallon Capital Management: Risk Arbitrage (C)." Harvard Business School Case 299-022, October 1998.
      • September 1998 (Revised March 2002)
      • Case

      Petrolera Zuata, Petrozuata C.A.

      By: Benjamin C. Esty and Mathew M Millett
      Petrozuata is a proposed $2.5 billion oil-field development project in Venezuela. The case is set in 1997 as the project sponsors, Conoco and PDVSA (Venezuela's national oil company), are planning to meet with various development agencies and rating agencies regarding... View Details
      Keywords: Risk Management; Valuation; Project Finance; Capital Markets; Investment; Projects; Mining Industry; Energy Industry; Venezuela
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      Esty, Benjamin C., and Mathew M Millett. "Petrolera Zuata, Petrozuata C.A." Harvard Business School Case 299-012, September 1998. (Revised March 2002.)
      • August 1998
      • Case

      General Motors Corp. (B), The : Financial Policies

      By: Peter Tufano
      The second in a four-part series, the case details the financial policies and practices at General Motors from 1990 to 1996. This part describes the stated financial policies of the firm, including its approach to capital structure, liability structure, equity... View Details
      Keywords: Corporate Finance; Auto Industry; United States
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      Tufano, Peter, William J Wildern, and Markus Mullarkey. "General Motors Corp. (B), The : Financial Policies." Harvard Business School Case 299-007, August 1998.
      • August 1998 (Revised February 1999)
      • Case

      Product Development at Dell Computer Corporation

      By: Stefan H. Thomke, Vish V. Krishnan and Ashok Nimgade
      Describes how Dell redesigned its new product development process after experiencing a major product setback and a significant decline in firm profits in 1993. Dell's new process is challenged during the development of a new line of portable computers when the incoming... View Details
      Keywords: Cost vs Benefits; Profit; Managerial Roles; Risk Management; Product Development; Business Processes; Problems and Challenges; Risk and Uncertainty; Hardware; Computer Industry
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      Thomke, Stefan H., Vish V. Krishnan, and Ashok Nimgade. "Product Development at Dell Computer Corporation." Harvard Business School Case 699-010, August 1998. (Revised February 1999.)
      • Summer 1998
      • Article

      A New Approach to Capital Budgeting for Financial Institutions

      By: K. A. Froot and J. Stein
      Keywords: Catastrophe Risk; Corporate Finance; Cost Of Capital; Banking And Insurance; Asset Pricing; Hedging; Banking; Decision Choice And Uncertainty; Financial Markets; Insurance; Policy; Risk Management; Natural Disasters; Insurance Industry
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      Froot, K. A., and J. Stein. "A New Approach to Capital Budgeting for Financial Institutions." Bank of America Journal of Applied Corporate Finance 11, no. 2 (Summer 1998): 59–69.
      • 1998
      • Chapter

      Risk-Taking Incentives and the Cost of Insurance Company Failures

      By: Brian J. Hall
      Keywords: Insurance; Insolvency and Bankruptcy; Risk and Uncertainty; Risk Management; Motivation and Incentives; Insurance Industry
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      Hall, Brian J. "Risk-Taking Incentives and the Cost of Insurance Company Failures." In Alternative Approaches to Insurance Regulation, edited by Robert W. Klein. Kansas City, MO: National Association of Insurance Commissioners, 1998.
      • April 1998 (Revised November 1999)
      • Case

      Hamilton Financial Investments: A Franchise Built on Trust

      By: Robert L. Simons and Antonio Davila
      Provides a vehicle for students to evaluate risk management in the fast-paced mutual funds industry. A new risk manager has been hired to install new management controls and procedures. A series of decisions will determine how much business and franchise risk the... View Details
      Keywords: Risk Management; Management Teams; Managerial Roles; Forecasting and Prediction; Investment Funds; Performance Evaluation; Corporate Strategy; Change Management; Financial Services Industry; Financial Services Industry
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      Simons, Robert L., and Antonio Davila. "Hamilton Financial Investments: A Franchise Built on Trust." Harvard Business School Case 198-089, April 1998. (Revised November 1999.)
      • April 1998 (Revised May 2000)
      • Case

      Guidant Corporation: Shaping Culture Through Systems

      By: Robert L. Simons and Antonio Davila
      Guidant is a successful IPO start-up selling pacemakers and defibrillators. The case describes how managers install systems to balance innovation and control. Three parts of a shareholder value strategy are described. Controls include incentive systems, beliefs... View Details
      Keywords: Innovation Strategy; Corporate Strategy; Motivation and Incentives; Planning; Risk Management; Management Systems; Business Strategy; Value Creation; System; Financial Services Industry; Financial Services Industry; Financial Services Industry
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      Simons, Robert L., and Antonio Davila. "Guidant Corporation: Shaping Culture Through Systems." Harvard Business School Case 198-076, April 1998. (Revised May 2000.)
      • January 1998
      • Article

      Risk Management, Capital Budgeting and Capital Structure Policy for Financial Institutions: An Integrated Approach

      By: K. A. Froot and J. Stein
      Keywords: Catastrophe Risk; Corporate Finance; Cost Of Capital; Banking And Insurance; Asset Pricing; Hedging; Banking; Decision Choice And Uncertainty; Financial Markets; Insurance; Policy; Risk Management; Natural Disasters; Insurance Industry
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      Froot, K. A., and J. Stein. "Risk Management, Capital Budgeting and Capital Structure Policy for Financial Institutions: An Integrated Approach." Journal of Financial Economics 47, no. 1 (January 1998): 55–82. (Winner of Journal of Financial Economics. Jensen Prize. First Place For the best paper published in the Journal of Financial Economics in the areas of corporate finance and organizations. Revised from NBER Working Paper No. 5403, January 1996 and HBS Working Paper 96-030, December 1995.)
      • December 1997 (Revised March 1998)
      • Case

      Mid Ocean Limited: Trading Catastrophe Index Options

      By: Kenneth A. Froot and Markus Mullarkey
      An insurance industry executive must evaluate the potential of a set of newly-offered catastrophe insurance derivatives. The background addresses the roles of traditional reinsurance and securitization efforts in providing risk transfer and risk financing in the "cat"... View Details
      Keywords: Commodity Market; Derivatives; Insurance; Capital Markets; Natural Disasters; Risk Management; Financial Management; Financial Strategy; Performance Evaluation; Insurance Industry; Bermuda
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      Froot, Kenneth A., and Markus Mullarkey. "Mid Ocean Limited: Trading Catastrophe Index Options." Harvard Business School Case 298-073, December 1997. (Revised March 1998.)
      • October 1997 (Revised May 1998)
      • Case

      Busang (A): River of Gold

      By: Debora L. Spar
      In 1995, Bre-X Minerals, a tiny Canadian mining firm, struck gold. Deep in the heart of the Borneo jungle, it discovered what appeared to be one of the world's largest and most cost-effective gold deposits. Almost immediately, the firm's stock price shot upwards and... View Details
      Keywords: Business or Company Management; Partners and Partnerships; Cross-Cultural and Cross-Border Issues; Mining; Mining Industry; Canada; Indonesia
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      Spar, Debora L., Jeffrey Bell, Christine Dinh-Tan, and Phillip Purnama. "Busang (A): River of Gold." Harvard Business School Case 798-002, October 1997. (Revised May 1998.)
      • August 1997 (Revised June 1999)
      • Case

      Providian Trust: Tradition and Technology (A)

      By: F. Warren McFarlan and Melissa Dailey
      A major trust company attempts to implement a major software system while simultaneously reengineering business processes. Providian Trust, a previously non-IT intensive organization, must completely reposition its management of technology to deal with IT's new... View Details
      Keywords: Change Management; Financial Institutions; Business Processes; Organizational Change and Adaptation; Information Technology; Applications and Software; Financial Services Industry
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      McFarlan, F. Warren, and Melissa Dailey. "Providian Trust: Tradition and Technology (A)." Harvard Business School Case 398-008, August 1997. (Revised June 1999.)
      • July 1997 (Revised September 1997)
      • Case

      USAA: Catastrophe Risk Financing

      By: Kenneth A. Froot and Mark Seasholes
      Describes the first major risk financing using catastrophe bonds. Provides a basis for discussing the securitization of insurance risks. View Details
      Keywords: Financial Management; Insurance; Capital Markets; Natural Disasters; Risk Management; Bonds; Financial Services Industry; Financial Services Industry; United States
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      Froot, Kenneth A., and Mark Seasholes. "USAA: Catastrophe Risk Financing." Harvard Business School Case 298-007, July 1997. (Revised September 1997.)
      • July 1997 (Revised April 1998)
      • Case

      Chase Manhattan Corporation: The Making of America's Largest Bank

      By: Stuart C. Gilson and Cedric Escalle
      Chase Bank and Chemical Bank intend to merge, producing the largest commercial bank in the United States, the fourth largest in the world. Projected financial benefits under the merger reflect significant planned reduction in operating costs, including 17,000 employee... View Details
      Keywords: Commercial Banking; Profit; Corporate Strategy; Value Creation; Restructuring; Negotiation; Mergers and Acquisitions; Risk and Uncertainty; Resignation and Termination; Revenue; Banking Industry; United States
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      Gilson, Stuart C., and Cedric Escalle. "Chase Manhattan Corporation: The Making of America's Largest Bank." Harvard Business School Case 298-016, July 1997. (Revised April 1998.)
      • April 1997
      • Article

      A Case Study of Organizational Form and Risk Shifting in Savings and Loan Industry

      By: B. C. Esty
      Keywords: Organizations; Financial Institutions; Risk and Uncertainty; Financial Services Industry
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      Esty, B. C. "A Case Study of Organizational Form and Risk Shifting in Savings and Loan Industry." Journal of Financial Economics 44, no. 1 (April 1997): 57–76.
      • February 1997 (Revised April 1997)
      • Case

      Harrington Financial Group

      By: Robert C. Merton and Alberto Moel
      In early 1997, Harrington Bank, a small Indiana savings and loan (thrift) wondered what its next move should be. Harrington was acquired in 1988 by the principals of Smith Breeden Associates, a money-management and consulting firm specializing in the application of... View Details
      Keywords: Banks and Banking; Mergers and Acquisitions; Price; Risk Management; Mortgages; Contracts; Asset Management; Investment; Financial Services Industry
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      Merton, Robert C., and Alberto Moel. "Harrington Financial Group." Harvard Business School Case 297-088, February 1997. (Revised April 1997.)
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