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Medium Strategic Response

California Wildfires

#Public Sector #Climate Change
ProHub Comment

This case tests a candidate's ability to structure a complex policy problem with multiple dimensions (prevention vs. response, short-term vs. long-term) while conducting financial analysis to identify the highest-impact intervention. The quantitative component requires calculation of expected value accounting for probability and scale, combined with strategic reasoning about prevention mechanisms.

Estimated Time 15 minutes
Difficulty Medium
Source IESE
50 / 100
The state of California has experienced devastating wildfires in recent years, causing deaths and billions of dollars worth of damage. The disasters are only projected to intensify, and the government needs to act fast. The governor has hired you to propose an action plan for prevention and mitigation. What factors would you analyse?

Clarifying Information

The case includes two exhibits: Exhibit 1 provides California Historical Wildfire Report showing number of fires by source (Utilities Failure, Human Error, Natural Causes) and total area burned from 2000-2020. Exhibit 2 provides 2022 California Department of Forestry Analysis with data on three cities (Oakland, Santa Barbara, Sacramento) including cost to build SafeWall, residential structures, percentage at-risk, annual wildfires, catastrophic fire rates, and average property values.