What Would You Do?
Digital Network RISK SCENARIOS
presented by Risk & Insurance
Created by Risk & Insurance® editors along with key industry thought leaders, Risk Scenarios are hypothetical
situations that showcase emerging risks. Participants ;rst consider how they would handle the challenge
before reviewing key risks, available solutions and related materials.
“It Happened Here”: Mid-sized Stratton Bank seems like a promising acquisition
prospect for larger Global Corp, and boards of directors on both sides are ready to sign
on the dotted line. Even when a junior risk manager from Global Corp. advises against
the merger due to accusations of wildlife destruction by one of Stratton’s advisees,
a solar company that operates a steam plant, the acquisition still goes through. A
report released the very next week con;rms the solar steam plant wildlife losses as
fact. The deal starts to go south when Stratton, now taking a reputational hit from the
environmental damage, begins to report alarming revenue declines. The situation is
worsened when Stratton is sued by the solar company’s shareholders for investment
losses. Now, Stratton’s CEO, who once envisioned rosy retirement, wonders how much
longer he’ll have a job.