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Deliverable 3 - Kingston-Bryce Risk Mitigation Plan
Stefani Campiglia
Rasmussen University
GEB3422CBE Section 01CBE Business Project Management
David Jones
09/15/2023
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Deliverable 3 - Kingston-Bryce Risk Mitigation Plan
Risk Mitigation
When it comes to business management, creating a risk mitigation plan is essential for success. A
risk mitigation plan is a strategy that is created to help prepare for and even lessen the negative
effects/threats that can happen to a business. For this specific risk mitigation plan, we will be looking
into Kingston-Bryce Limited. They are looking into acquiring their competitor, Woodworks Galore. This
project is going to take 18 months with a 5-million-dollar budget. With so much time and money at
stake, we need to process the potential risks in this acquisition. First, let's dive into the different ways
that we can handle risks. (Pinto, 2018)
Risk Avoidance
Risk avoidance is a way to remove a potential risk completely from the project and is eliminated
from causing any harm to the organization. There are a few ways that this can be approached. One of the
main ways is by researching previous projects and evaluating what has and has not worked. Other
examples of risk avoidance strategies are making sure security measures are in place, enforcing policies,
and employee education. These are all effective ways to prevent risks from happening to begin with.
(Pinto, 2018)
Risk Sharing
Risk sharing is a way of sharing the risk amongst two or more parties. This means that the risk is
dispersed evenly, and the parties are all in agreement to take this risk, regardless of the outcome. The
advantage of risk sharing is that if it is a negative outcome, it does not hit the company as hard. On the
other hand, some disadvantage of risk sharing is that it can impose on the company's management
strategy, or loss of control/autonomy due to having to share with another party. (Pinto, 2018)
Risk Reduction
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Risk reduction is a way to reduce the likelihood that a risk will occur/lowers the consequences
that the risk can impose on the company. This is very similar to risk avoidance, except with risk
avoidance, you’re working on eliminating the risk from happening. Some strategies for risk reduction are
implementing controls, projecting management methods, and reinforcing strategies. (Pinto, 2018)
Risk Transfer
Risk transfer is a way to transfer the risks from one part to another. This has some similarities to
risk sharing, although the risk is not relying on multiple parties at the same time. This only has an impact
on the party, the risk is on at the moment it happens. An example of risk transfer is purchasing an
insurance company and the risk of loss gets passed from the policyholder to the insurer. (Pinto, 2018)
Potential Risks
Now that we are aware of the four different ways to handle risks, let's go ahead and assess three
potential risks that we can face with the acquisition of Woodworks Galore. We are going to evaluate the
risks and see what actions can be taken in order to minimize the impact of these risks on the project. The
three potential risks we are looking at are going over our budget, exceeding the timeline, and
competition counteroffering.
For going over our budget of 5 million dollars, the outcome from this could be going into debt, or
having to push the schedule back past the 18 months given. To make sure that this does not happen,
there needs to be a budget in the mitigation strategy and make sure that it is adhered to.
I think a very common risk with projects and acquisitions is exceeding the time limit given. This
can cause us to go over budget, and mess with anything planned such as when new employees start,
when the opening is, etc. To ensure that we do not go over the time limit given, we need to make sure
that we have our schedule thoroughly planned out and have consistent meetings to make sure we are
not falling behind, and if we are, what actions we can take in order to catch up.
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The last risk we may encounter is competitors trying to counteroffer our offer. The outcome of
this one is simple; we could lose the acquisition and the whole project could be terminated. In order to
make sure that this does not happen we could do a couple of things. One is we could make sure we have
a budget set aside to increase our offer to buy the company, just in case. We could also make sure we
solidify a relationship with the company and make sure we have papers signed immediately.
