Here are the Top 5 Risks while Selecting an MBA Program

Risk of Selecting an MBA ProgramRisk 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:

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

2019 MBA Research Guide - Choose your MBA

"I attended three MBA Tours in US and Canada. I could just scratch the surface compared to what the guide has included. Thank you guys for the amazing book"

F1GMAT's Comprehensive MBA Research Guide will teach you how to select MBA programs through a bottom-up approach. 

Articulating your Post-MBA Goals and Career Path is the FIRST step. Which program will give you that hike in Salary, Switch in Career, Change in Location or Job Satisfaction?

We cover them all through our extensive analysis. 

Pages: 500

+ How to Choose the Best MBA Program: Factors to Consider
Define Post-MBA Goals
Pick your Path: Generalize or Specialize
Use Moral Algebra Method 
Use Multi-Attribute Utility Theory
Understand the Top 5 Risks
Measure MBA Career Service Team's Effectiveness
Use Bookending to Calculate MBA Admission Chance
Use Net Present Value to Calculate MBA Return on Investment
Don't Fall for the Mere Exposure Effect
Best Practices to find the truth in MBA Information Session or MBA Tour

Comprehensive MBA Research Guide:
Top MBA Programs by 19 Specializations:
+ General Management
+ Finance
+ Consulting
+ Marketing
+ Strategy
+ Operations Management
+ Supply Chain Management
+ Luxury Management
+ Information Systems
+ Hospitality Management
+ Accounting
+ Energy
+ Non-Profit
+ Wine
+ Sports
+ Sustainability
+ Leadership Development
+ Military &
+ International

+ Top MBA Program Ranking
Top 20 MBA Programs - Tuition Fee (2018)    
Top 31 MBA Programs in United States – Total Cost & Salary (2017)    

Top 60 MBA – GMAT and GPA (Average & Median)
Top 20 European MBA Programs - Tuition Fee, Total Cost & Salary    
Top 20 European MBA Programs (Based on Actual Salary Increase)    
Top 20 European MBA Programs (Short-term return on investment)    
Top 20 Affordable European MBA Programs    
Top 10 MBA in UK – Salary & Fee (2018)  
Top MBA Destinations Based on Happiness Index    
Top MBA Destinations based on Innovation Index    
Top 10 MBA Job Markets based on Cost of living and Purchasing Power    
Top MBA Destination: By Economy    

+Comparisons - Top MBA Programs
Wharton vs. Columbia MBA (2018)  
MIT vs. Stanford MBA   (2017)
Haas vs. Ross MBA    
Kellogg vs Ross MBA    
Booth vs Wharton MBA    
MIT Sloan vs Tuck MBA    
IIMA vs. ISB   

Harvard vs. Stanford MBA (2017)

+ MBA in France (2018)
Top Industries in France   
Top MBA Programs in France  

  Class Profile   
  Post-MBA Salary

Scholarships in France
External Funding 

+ MBA in the UK (2018)
Top Industries in the UK   
Top MBA Programs in the UK

  Class Profile   
  Post-MBA Salary

Scholarships in the UK
External Funding 

New Visa Rules: Post-Brexit

Download F1GMAT's MBA Research Guide (2019)

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