Case Analysis of Risk, Uncertainty and Managing Incentives Essay (Essay Sample)

Case Analysis of Risk, Uncertainty and Managing Incentives
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Introduction
Risk analysis is described as the measurement of different outcomes within an organization or business. The results of the risk analysis may be beneficial to a company or may pose a danger to a company's well-being. Every company desires to eliminate the possibility of all risks that they may be encountered with;however, this may not be the case as each industry has a likelihood of facing dangers within their lifetime (). Every manager is tasked with the responsibility of coming up with different initiatives aimed at minimizing the risks involved as the work proceeds. Failure to prepare for the outcomes will lead to collapse of the entire business and this may have adverse events to both the employer and employees and also to the customers who had been receiving their services.
The business world is faced with a lot of uncertainty as magnitude of circumstances or events is always unknown and quite unpredictable. Hence, managers must-have steps to mitigate the possibility of risks. Some of the steps the managers may follow include; identification of hazards, evaluation of risks and their effects on their employees and review any dangers as changes occur. This essay is going to focus on the airline industry specifically the United company, risks associated and ways to manage risks, uncertainty and incentives.
Risk and Uncertainty
Risk is very common in the airline industry as there is always uncertainty when it comes to issues dealing with safety, competition, profitability, loses, etc. The United company is not an exception when it comes to risks and uncertainty of events. It is also referred to as United Airlines, which is the third largest airline in the world after Delta and Southwest. Walter Varney is the founder of the operation as of April 6, 1926. Commencement operations began on March 28, 1931, and the airline has been in service ever since (). This airline industry