Risk Mitigation Plan to Complete the Acquisition of the Competitor: Kingston-Bryce Limited
Scenario
In your role as a Project Manager for Kingston-Bryce Limited you have been assigned to create a risk mitigation plan. Risk mitigation is a key component of project planning because you are trying to look at all of the alternatives while planning everything for a project. The Board of Directors for Kingston-Bryce Limited (KBL) is eager to move forward with the acquisition of their competitor. The acquisition of the competitor will enable KBL to expand operations and triple their workforce and will take 18 months to complete with a projected cost of $5 million. The project could be at risk because there have been rumors that another buyer has entered a bid to buy KBL’s competitor. In order for this acquisition to be successful, you will need to use your project management skills to ensure success and that the project stays on budget and time.
Instructions
Your task is to create a risk mitigation plan in Microsoft Word to ensure that KBL has documentation to complete the acquisition. Detail the risks the project may be subjected to and what actions will be taken to minimize the impact of these risks on your project. You will need to create a list of risks that could potentially happen in the project. Be creative!
Think about examples such as cost, contractual, financial, political, or technical risks that might occur when launching a project. A key point to remember is that risks are broken down into the following broad categories, which should be included in your plan:
Risk avoidance
Risk sharing
Risk reduction
Risk transfer
Risk Mitigation Plan
Name
Institution
Course Code and Title
Instructor
Date
Risk Mitigation Plan
Effective risk management is guided by the application of effective risk identification and mitigation aspects. Kingston-Bryce Limited (KBL) will greatly benefit from the use of an extensive risk mitigation plan to ensure that the acquisition of the competitor is secure from being purchased by another buyer. A risk mitigation plan helps minimize and even eradicate the effects of the threats that the risks pose in achieving KBL’s acquisition project success.
Risks in the Project
The KBL project is prone to face financial, contractual, political, and technical risks in its aim to acquire the competitor. The main risk is the financial risk since the other buyer may try to outdo KBL on the basis of meeting a higher bidding cost. The financial risks involve the ability of KBL to make a high bid as well as the costs involved in sustaining the entire bidding process. KBL may run out of funds or even experience overbudgeting from the project as a risk that may end up affecting even KBL’s operations. The contractual risk that KBL may face is the fact that the other buyer may end up negotiating a better contract, which will throw KBL out of the race. The political risk that KBL faces is the lack of political support from local leaders and the community to purchase the competitor. Negative