reduce the project risks of the acquisition by breaking down the acquisition into small regular deliveries of weeks in duration. This will not only reduce our risks, but also help us manage and obtain our goals. Risk Transfer Risk transfer is a risk management and control strategy that involves the contractual shifting of a pure risk from one part to another. This involves a party assuming the liabilities of another party. The acquisition as a whole is a risk transfer because KBL is acquiring all of the liabilities from the new company. This can be broken down into smaller risk transfers as well as
Risk Mitigation Plan 4 we work to consolidate a lot of our similar departments, procedures, and finances. For example, the new company may have a process in place for how they process PO’s that is a better fit than our current process. We are not transferring the risk affiliated with this process over to our company. Other examples would be the financial liabilities, such as insurance policies that are currently in place by the acquired company. These transfers of risk are important for an acquisition so that our organization can gain the liability of the new company to be utilized to it’s full potential instead of potentially damaging the existing business by overlooking the risks.
You've reached the end of your free preview.
Want to read all 4 pages?
- Fall '19