Consulting Case Interview Practice Questions

Answer: b - Risk management at large firms is often siloed, meaning that separate groups have their own risk management approach and don't talk to one another. Some of the recent financial crisis was caused by this. Firms had different groups loaded with exposure to declines certain assets. To each of the individual groups, the risk was manageable, but aggregated across the firm, it resulted in huge losses.

Key takeaway: The best companies apply enterprise risk management, a coordinated approach to risk management across the organization.