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Running Head: DEALING WITH RISKS1Dealing with Risk, Asymmetric Information, and IncentivesNameCourseProfessorDateDEALING WITH RISKS2Dealing with Risk, Asymmetric Information, and IncentivesRecent Risk Management approach by Southwest AirlinesThe Southwest Airlines appreciates that it appreciate in an environment that ischaracterized by the existence of a wide range of risks. While some of the risks are internal andthe company has total control over them, many other hazards are presented by the externalenvironment, and the company has no control over them. Be that as it may, there are a lot ofstrategies that are available which companies may adopt to mitigate the impact of the risks whenthey happen. It is critical to appreciate the fact that it is difficult for individuals or organizationsto prevent hazards from happening completely. Conversely, individuals and organizations maytake particular steps to reduce the impacts of the risks. In the recent past, The Southwest Airlineshas initiated a lot of interventions to manage any risks that may hit it.One of the most prominent risks that Southwest has expertly handled is the price warwith other airlines in specific routes. To attract the highest number of customers, some airlinesmake decisions to cut to levels that are so low that others may not reach. In the events of theother companies are not mitigated, the ramifications of such price wars may be devastating(Rampini et al, 2014). In appreciation of ...


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