Here are the Top 5 Risks while Selecting an MBA Program

Risk cannot be measured objectively and the metrics to measure risks are means to face uncertainties that lay ahead with a decision. The risk that an Asian MBA aspirant perceives might be non-existent for American students. Although the overall risk depends on the culture that the students are exposed to, let us look at some of the General risks that an MBA Aspirant face while choosing an MBA program.

1) Location Risk

Although the location of the job post-MBA is a crucial factor for choosing one program over the other, students who plan to be part of an MBA program don’t research in detail about the constraints and opportunities of post-MBA job locations. One metric that gives a sense of the economic state of the location is the GPD growth rate. A 3-Year GDP growth rate might give you a short-term view of where the economy is heading but if you read F1GMAT’s 5-Year GDP growth rate of top MBA Destinations, you will get a better picture of some of the best post-MBA locations.

2) Industrial Risk

If you have read MBA Employment report, most schools will publish the jobs by Industry and Function. Understanding the impact of the economy on an Industry is important for selecting one school over the other. During the 2008 Global Economic Crisis, the demand for Finance and Banking jobs suddenly dropped. Banks triggered the crisis and suddenly you began to see layoffs and the demand for MBAs in this industry dropping by over 30%. You can argue that an MBA from Columbia or Wharton would neutralize this risk but even top tier schools get impacted during a recession, although not the same extent as tier-2 schools.

3) Functional Risk

The freedom to change Job Function is one of the primary reasons for selecting an MBA program. Most students are willing to switch industries or continue in the same industry if they have the freedom to change job functions post-MBA. This risk should be given the highest priority. While doing your research, read about Post-MBA Job Trends and the Employment report. Find out the percentage of the class in each job function. What percentage from your background was able to choose the job function that you desire? Pick schools based on this metric.

4) Work Permit Risk

This risk is relevant for International students. Before you pick the school, learn about the visa regulations in the host country. Each country has different bi-lateral treaty with the host country. Understand the visa rules and changes in the near future. Most host countries permit students to work up to 6-Months after graduation. But the important thing to research is the ease with which student visa can be changed to work permit. US have a stable and more open visa rules for qualified graduates. But European countries, especially UK has recently changed visa regulations to control the misuse of their immigration policies. Read UK MBAs Losing Steam – Blame the Economy & UK Border Agency visa to learn more.

5) Brand Risk

No matter how hard schools try to promote the idea that their MBA program is not just focused on Marketing, Finance, Consulting or Entrepreneurship, the brand perception impacts the recruiter interest. It is better to pick schools based on specialization. You cannot do much about changing brand image but you certainly can select schools based on your post-MBA function. To get a deeper understanding of top schools based on specialization, read the following:

1)  Top MBA in Marketing
2)  Top MBA in Finance
3)  Top MBA for Management Consulting Career
4)  Top Non-Profit MBA
5)  Top MBA in General Management
6)  Top Wine MBA
7)  Top Sports MBA
8)  Top Green MBA
9)  Top Strategy MBA
10) Top MBA in Information Systems
11) Top MBA in Supply Chain Management
12) Top Leadership Development MBA
13) Top Military MBA
14) Top MBA in Luxury Management
15) Top International MBA
16) Top MBA in Accounting
17) Top MBA in Hospitality Management
18) Top MBA in Entrepreneurship