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      Risk ManagementRemove Risk Management →

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      • February 1994 (Revised February 1996)
      • Case

      Union Carbide Corporation: Interest Rate Risk Management

      By: Peter Tufano
      Union Carbide's board of directors is asked to evaluate a proposal from the staff treasurer's that would articulate policies to manage its debt portfolio. The staff proposes that shareholder value will be maximized if the firm manages its exposure to interest rates by... View Details
      Keywords: Risk Management; Interest Rates; Corporate Finance; Chemical Industry
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      Tufano, Peter, and Jon Headley. "Union Carbide Corporation: Interest Rate Risk Management." Harvard Business School Case 294-057, February 1994. (Revised February 1996.)
      • February 1994 (Revised August 1994)
      • Background Note

      Note on Contingent Environmental Liabilities

      By: Richard H.K. Vietor and Forest L. Reinhardt
      Addresses contingent environmental liabilities that are the result of unforeseen environmental risks where the dollar amount of such liabilities is unknown and depends on future events. In contrast, fines for violating environmental laws are liabilities, but are not... View Details
      Keywords: Legal Liability; Risk Management; Natural Environment; Laws and Statutes; Pollutants; Governance Compliance; United States
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      Vietor, Richard H.K., and Forest L. Reinhardt. "Note on Contingent Environmental Liabilities." Harvard Business School Background Note 794-098, February 1994. (Revised August 1994.)
      • January 1994 (Revised August 1994)
      • Case

      Ocean Spray Cranberries: Environmental Risk Management

      By: Richard H.K. Vietor
      Ocean Spray Cranberries, one of the nation's most successful agricultural cooperatives, faces some difficult environmental management problems associated with water usage and wetlands development. Because of federal and state wetlands laws, new bogs for expansion had... View Details
      Keywords: Agribusiness; Innovation and Invention; Risk Management; Cooperative Ownership; Environmental Sustainability; Agriculture and Agribusiness Industry
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      Vietor, Richard H.K. "Ocean Spray Cranberries: Environmental Risk Management." Harvard Business School Case 794-088, January 1994. (Revised August 1994.)
      • 1994
      • Simulation

      NEO 2394 Karensky

      By: Dutch Leonard
      Keywords: Risk Management; Crisis Management
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      Leonard, Dutch. "NEO 2394 Karensky." Simulation and Teaching Note. 1994. (risk analysis crisis management simulation exercise.)
      • December 1993 (Revised November 2009)
      • Case

      Manville Corporation Fiber Glass Group (A)

      By: Lynn S. Paine and Sarah Gant
      Manville Corp.'s senior managers must decide how to respond to a new scientific study suggesting that fiberglass, the source of 75% of the company's profits, may be another asbestos and must act under conditions of great uncertainty. In particular, when should a... View Details
      Keywords: Communication Strategy; Decision Choices and Conditions; Ethics; Health Disorders; Risk Management; Marketing Communications; Product; Corporate Social Responsibility and Impact; Safety; Consumer Products Industry; Industrial Products Industry
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      Paine, Lynn S., and Sarah Gant. "Manville Corporation Fiber Glass Group (A)." Harvard Business School Case 394-117, December 1993. (Revised November 2009.)
      • December 1993
      • Article

      Risk Management: Coordinating Corporate Investment and Financing Policies

      By: K. A. Froot, David S. Scharfstein and J. Stein
      Keywords: Catastrophe Risk; Corporate Finance; Banking And Insurance; Hedging; Banking; Decision Choice And Uncertainty; Financial Markets; Insurance; Policy; Risk Management; Natural Disasters; Cost of Capital; Asset Pricing; Insurance Industry
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      Froot, K. A., David S. Scharfstein, and J. Stein. "Risk Management: Coordinating Corporate Investment and Financing Policies." Journal of Finance 48, no. 5 (December 1993): 1629–1658. (Revised from NBER Working Paper No. 4084, February 1993. Reprinted in RAE-Revista de Administração de Empresas, Management Journal of Fundação Getulio Vargas (FGV-EAESP), Business School for Administration in Sao Paulo, Brazil, volume no. 48, issue no. 1 (January-March 2008): 87-118. Reprinted in Insurance and Risk Management, Volume II, Corporate Risk Management, Part I: Theory on Why and How Firms Manage Risk, Chapter 3, edited by Gregory R. Niehaus, UK: Edward Elgar Publishing Ltd. (October 2008). Also in M.J. Brennan, The Theory of Corporate Finance from The International Library of Critical Writings in Financial Economics, edited by R. Roll, 1995; and in Merton Miller and Chris Culp, eds. Corporate Hedging in Theory and Practice: Lessons from Metallgesellschaft, Risk Books, 1999.)
      • 1993
      • Chapter

      Management of Risk Capital in Financial Firms

      By: Robert C. Merton and André Perold
      Keywords: Risk Management; Capital; Financial Institutions; Financial Services Industry
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      Merton, Robert C., and André Perold. "Management of Risk Capital in Financial Firms." In Financial Services: Perspectives and Challenges, edited by Samuel L. Hayes III, 215–245. Boston, MA: Harvard Business School Press, 1993.
      • July 1993
      • Case

      ABB Deutschland (Abridged)

      By: Christopher A. Bartlett
      Focuses in detail on implementing a corporate restructuring program in ABB's German subsidiary. Special attention is given to Germany's unique form of industrial governance. Two major problem areas--power plants and power transformers--are described in detail. ABB's... View Details
      Keywords: Restructuring; Energy Generation; Corporate Governance; Factories, Labs, and Plants; Salesforce Management; Policy; Organizational Culture; Energy Industry; Germany
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      Bartlett, Christopher A. "ABB Deutschland (Abridged)." Harvard Business School Case 394-019, July 1993.
      • May 1993 (Revised January 1994)
      • Case

      Cummins Engine Company, The: Starting Up "B" Crankshaft Manufacturing at the San Luis Potosi Plant

      By: Robert H. Hayes
      Cummins Engine Co. is starting up production of diesel engine crankshafts in its plant in central Mexico. This operation requires much tighter tolerances than any product previously produced at the plant, and the young (recent MBA) manager who is in charge of the... View Details
      Keywords: Decision Choices and Conditions; Production; Cross-Cultural and Cross-Border Issues; Emerging Markets; Problems and Challenges; Industrial Products Industry; Mexico; Alabama
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      Hayes, Robert H. Cummins Engine Company, The: Starting Up "B" Crankshaft Manufacturing at the San Luis Potosi Plant. Harvard Business School Case 693-121, May 1993. (Revised January 1994.)
      • April 1993 (Revised December 1994)
      • Case

      Lehman Brothers and the Securitization of American Express Charge-Card Receivables

      By: Andre F. Perold and Kuljot Singh
      In early 1992, Lehman Brothers had received a mandate from its affiliate, American Express Travel Related Services (TRS) Co., to securitize a portion of its consumer charge-card receivables portfolio. It is now July 22, and Lehman and TRS have just returned from a... View Details
      Keywords: Risk and Uncertainty; Credit Cards; Financial Instruments; Stocks; Asset Pricing
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      Perold, Andre F., and Kuljot Singh. "Lehman Brothers and the Securitization of American Express Charge-Card Receivables." Harvard Business School Case 293-121, April 1993. (Revised December 1994.)
      • April 1993 (Revised October 1995)
      • Case

      American Barrick Resources Corporation: Managing Gold Price Risk

      By: Peter Tufano
      Managing the risk of changing prices of gold is central to the business strategy of American Barrick Resources Corp., one of North America's largest and most successful gold-mining firms. The case contrasts this firm's hedging policies with those of its rivals that do... View Details
      Keywords: Risk Management; Business Strategy; Mining; Mining Industry; United States
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      Tufano, Peter. "American Barrick Resources Corporation: Managing Gold Price Risk." Harvard Business School Case 293-128, April 1993. (Revised October 1995.)
      • March 1993 (Revised July 2008)
      • Case

      Liability Management at General Motors

      By: Peter Tufano
      An analyst at General Motors charged with managing the structure of the automaker's debt must decide whether and how to modify the interest rate exposure of the firm's most recent debt offering. The analyst must take into consideration GM's liability management policy... View Details
      Keywords: Borrowing and Debt; Capital Structure; Financial Management; Interest Rates; Risk Management; Auto Industry; North America
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      Tufano, Peter. "Liability Management at General Motors." Harvard Business School Case 293-123, March 1993. (Revised July 2008.)
      • March 1993
      • Supplement

      Burroughs Wellcome and AZT (B)

      By: Willis M. Emmons III
      Describes Burroughs Wellcome's response to protests over the pricing of its AIDS drug AZT in September 1989. Also presents short-term reactions by government officials, AIDS activists, and investors to Burroughs Wellcome's strategy. View Details
      Keywords: Ethics; Health Pandemics; Multinational Firms and Management; Price; Crime and Corruption; Risk and Uncertainty; Business Strategy; Business and Community Relations; Business and Government Relations; Business and Shareholder Relations; Pharmaceutical Industry
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      Emmons, Willis M., III. "Burroughs Wellcome and AZT (B)." Harvard Business School Supplement 793-114, March 1993.
      • October 1992 (Revised September 1993)
      • Case

      L.L. Bean, Inc.: Item Forecasting and Inventory Management

      By: Arthur Schleifer Jr.
      L.L. Bean must make stocking decisions on thousands of items sold through its catalogs. In many cases, orders must be placed with vendors twelve or more weeks before a catalog lands on a customer's doorstep, and commitments cannot be changed thereafter. As a result,... View Details
      Keywords: Forecasting and Prediction; Risk Management; Cost Management; Risk and Uncertainty; Demand and Consumers; Order Taking and Fulfillment; Retail Industry; United States
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      Schleifer, Arthur, Jr. "L.L. Bean, Inc.: Item Forecasting and Inventory Management." Harvard Business School Case 893-003, October 1992. (Revised September 1993.)
      • October 1992 (Revised August 1994)
      • Case

      Allied-Signal: Managing the Hazardous Waste Liability Risk

      By: Richard H.K. Vietor and Edward Prewitt
      Allied-Signal, Inc., one of the world's oldest chemical companies and today a diversified conglomerate, is liable for clean-up costs of old hazardous waste sites. These costs are substantial: reserves grew to nearly $500 million in 1991. Attempting to avoid further... View Details
      Keywords: Wastes and Waste Processing; Environmental Sustainability; Programs; Cost Management; Policy; Government Legislation; Factories, Labs, and Plants; Governance Compliance; Legal Liability; Chemical Industry; United States; Europe
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      Vietor, Richard H.K., and Edward Prewitt. "Allied-Signal: Managing the Hazardous Waste Liability Risk." Harvard Business School Case 793-044, October 1992. (Revised August 1994.)
      • September 1992 (Revised October 1992)
      • Case

      Acid Rain: The Southern Co. (B)

      By: Forest L. Reinhardt
      In addition to the issues of expected cost minimization elucidated in Acid Rain: The Southern Co. (A), problems involving regulatory uncertainty are critical to the firm's Clean Air Act compliance strategy. The regulatory uncertainty affects, and is affected by, the... View Details
      Keywords: Energy Generation; Business Strategy; Environmental Sustainability; Cost vs Benefits; Risk and Uncertainty; Strategic Planning; Investment Return; Government Legislation; Wastes and Waste Processing; Business and Government Relations; Utilities Industry; Energy Industry; United States
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      Reinhardt, Forest L. "Acid Rain: The Southern Co. (B)." Harvard Business School Case 793-040, September 1992. (Revised October 1992.)
      • September 1992
      • Background Note

      Note on the Financial Perspective: What Should Entrepreneurs Know?

      By: William A. Sahlman
      Identifies concepts and tools of finance that are useful to general managers and critical to entrepreneurs: cash, risk, and value. View Details
      Keywords: Entrepreneurship; Cash; Financial Strategy; Management Analysis, Tools, and Techniques; Managerial Roles; Risk Management; Value
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      Sahlman, William A. "Note on the Financial Perspective: What Should Entrepreneurs Know?" Harvard Business School Background Note 293-045, September 1992.
      • June 1992
      • Article

      The Strategic Management of Uncertainty

      By: David J. Collis
      Keywords: Strategy; Management; Risk and Uncertainty
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      Collis, David J. "The Strategic Management of Uncertainty." European Management Journal 10, no. 2 (June 1992): 125–135.
      • March 1992
      • Case

      Amgen, Inc.: Planning the Unplannable

      By: Nitin Nohria
      By the early 1990s, Amgen--a pharmaceutical company started little over a decade ago as Applied Molecular Genetics--was within range of becoming a billion-dollar company. With two extremely successful biotechnology drugs on the market, Amgen stood as the largest and... View Details
      Keywords: Growth and Development Strategy; Strategic Planning; Success; Risk and Uncertainty; Pharmaceutical Industry
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      Nohria, Nitin. "Amgen, Inc.: Planning the Unplannable." Harvard Business School Case 492-052, March 1992.
      • February 1992 (Revised September 2003)
      • Supplement

      Beech-Nut Nutrition Corporation (A-2)

      By: Lynn S. Paine, Bronwyn Halliday and Michael Santoro
      Beech-Nut's CEO must decide what to do. Asks students to consider how much evidence of impurity should be enough to trigger management's acknowledgment of a problem. What are the cognitive and attitudinal factors and pressures that lead people to persist in beliefs... View Details
      Keywords: Safety; Risk Management; Attitudes; Nutrition; Cognition and Thinking; Food and Beverage Industry
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      Paine, Lynn S., Bronwyn Halliday, and Michael Santoro. "Beech-Nut Nutrition Corporation (A-2)." Harvard Business School Supplement 392-085, February 1992. (Revised September 2003.)
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