Applied Science

Kingston-Bryce Risk Mitigation Plan 1

Kingston-Bryce Risk Mitigation Plan 2

Kingston-Bryce Risk Mitigation Plan

Rawda Ismail

Rasmussen College

Author’s Note

This paper is being submitted on July 12, 2020, for Ashley Cobb Section GEB3422CBE Business Project Management.

Kingston-Bryce Risk Mitigation Plan

According to Ahmed (2017), risk mitigation refers to the strategies or steps adopted by an organization in planning and developing measures that will reduce risks that hinder goal accomplishments. A risk mitigation plan helps businesses prepare for unknown risks to avoid interfering with operations and continuity. It is the primary responsibility of every project manager to have the knowledge and skills of handling risks of a business, especially during the acquisition stage. In this paper, the risk mitigation plan will be discussed regarding KBL acquisition.

Risk Avoidance

Risk avoidance applies when an organization tries to protect its resources by eliminating threats, exposures, and/or engaging in activities that mean well to the business. Unlike risk management that tries to contain threatening events, risk avoidance blocks all channels that could potentially bring compromising situations. For instance, the company continues to use an ERP system that serves to meet the demands of the business, not beyond its stretch. Considering the business, we are planning to merge with has an advanced ERP system, we must deter implementing this program in our company. However, our current ERP systems demand our aqua-merged employees go for appropriate training.

Risk Sharing

Sometimes businesses should utilize risk-sharing in situations where risks cannot be completely avoided. (Ahmed, 2017) says that risk-sharing involves sharing the cost of risk consequences among several participants within an organization. In our case, it will involve the marketing team going over the annual budget, and the sales team re-distributes a portion of their budget to balance the loss made by the company and the marketing team. The company taking an acquisition with the KBL is supposed to share risks. Where applicable in each division, the KBL should take over the financial aspects of the newly acquired company to evenly distribute the diversified debts.

Risk Reduction

Every enterprise designs a risk management plan that seeks to reduce risks to zero. An enterprise implements measures that prevent actualizing risks in order to minimize or control its financial losses. Risk reduction, according to Ahmed (2017), is packed with health and safety measures. In our case, the KBL initiate a training and assessment program for all employees to understand OSHA health and safety guidelines. Unlike the acquired company that is not up-to-date with the OSHA’s safety and health standards. As a project manager, I will break down the acquisition into small regular deliveries of weeks in duration to not only reduce the project risks of acquisition but also to help manage and obtain our goals (Ahmed, 2017).

Risk Transfer

Ahmed (2017) describes risk transfer as a risk management process that allows a business to shift a real risk from one part to another contractually. This involves an acquired company taking the liabilities of the merging company. KBL, for instance, is taking all the liabilities from the newly acquired company as a risk transfer method. This can be broken into littler risk transfers just as we work to unite a ton of comparable units, procedures, and funds. For instance, the new organization may have a procedure set up for how they process the PO's better than our present procedure. We are not moving the hazard affiliated with this procedure over to our organization.

References

Ahmed, R. (2017). Risk Mitigation Strategies in Innovative Projects. In Key Issues for Management of Innovative Projects. IntechOpen.

Broudou, J., Symons, M., & Symons, A. J. R. (2016). U.S. Patent Application No. 15/140,929.