Sample interview questions: How do you approach managing investments in industries with high labor market risk?
Sample answer:
Approaching Investments in Industries with High Labor Market Risk
1. Assess Labor Market Dynamics:
- Analyze industry-specific labor market trends, including unionization rates, labor supply, and wage pressures.
- Identify potential risks and vulnerabilities, such as labor shortages, rising labor costs, or union disputes.
2. Diversify Investments:
- Spread investments across companies within the industry and other industries with different labor market dynamics.
- Consider investing in companies with strong labor relations, union neutrality, or access to a skilled labor force.
3. Mitigate Labor Market Risk:
- Engage with companies to understand their labor market strategies and risk management plans.
- Invest in companies with strong employee retention programs, flexible work arrangements, and employee development initiatives.
- Monitor industry news and labor relations updates to identify potential disruptions.
4. Invest in Disruptive Technologies:
- Evaluate investments in technologi… Read full answer