Deliverable 3
Risk Mitigation Plan for
KBL Project
Name:
Course:
Page |1
Risk Mitigation Plan for KBL Acquisition Project
The purpose of the risk mitigation plan is to enlist all the foreseeable risks involved in a
project and create a risk plan to incorporate all the incontinency into the project. This structure
risk mitigation plan helps to understand the nature and the magnitude of different risks and it
gives the project manager an opportunity to prepare to encounter the risks. This plan also
identifies the actions required to eliminate or reduce the impact of the risk. It is very important
for KBL to develop a clear risk mitigation plan before entering execution stage of the project life
cycle, considering different risks. The acquisition project is strategic in nature and strategic
projects are generally very high risk, therefore it is critical for KBL carefully do the risk analysis.
After identifying and analyzing the risk, KBL can choose one of the alternatives from risk
avoidance, risk sharing, risk reduction or risk transfer to deal with risk it faces.
The acquisition project of KBL could face a verity of risks, the commonly known risks involved
in different projects are listed below.
Cost Risk
Cost is an essential constraint in project management; any cost increasing the estimated cost can
be a risk as it in can hinder the flow of the project can burden be a burden on the resources of the
company. This risk cannot be completely avoided as most of the cost transactions are based on
forecasting and the actual cost can vary, rather it can be reduced by carefully making cost plan
at the planning stage of the project life cycle. The company need to carefully analyze all the costs
involved such as labor cost, transferring costs, human resource costs or any other implicit costs.
Financial Risk
Investing in the acquisition will burden the resources and put more pressure on KBL to generate
funds for running operations and other projects. There are chances that the company could face
financial strain for a while after the acquisition. This risk can be reduced by planning how the
company is going to react in the tough circumstances.
Page |2
Contractual risk
This acquisition project has the potential of loss if the contract terms and conditions are not met
on the proper scheduled deadlines. KBL should make a comprehensive risk mitigation plan
through efficient management and control. The project deliverables should follow the schedule
and all the compliance and regulation should be checked during the planning stage so if there is
any compliance that can be met before hand. This kind of risk can be avoided or shared by
thoroughly checking the regulations and compliance and by making good relationships with the
stakeholders.
Technical risk
The technical risks are generally due to the factors leading to technical inefficiency. This can be
the miss management of time and resources. This is a high-risk project sinc the acquisition
involves the merge of huge number of employees from two different companies which can lead
to workplace conflict and it can lead to technical mishaps. This kind of risk can be avoided
through a effective transformation of information and better communication plan involving all
the stakeholders.
Performance risk
It is a strategic project and is very sensitive in terms of its performance; if the project's
performance is not as estimated or fails to produce consistent results, it can be a significant
threat. It can also be avoided through proper planning, training, and communication.
