Things One Would Need to Know About Due Diligence and Risk Management

26

Whenever one is in a process of transacting any business with a third party, he or she would need to make sure that he or she conducts a full due diligence audit. One would need to be very careful throughout the acquisition process of a physical plant or even a project asset. One would, however, need to make sure that he or she involves the necessary skills required in performing the due diligence activities necessary for an acquisition. Among the things, one would need to take note in the acquisition process include recognition of both the risk as well as the opportunity in the project in question. For the purchase to be successful, one would need to make sure that he or she identifies and mitigates any risk which may harm the operations of the plant or project in question.

As a result, one would need to make sure that he or she has involved an expert who would assist one in developing and implementing risk profiling process, assess the risk for the project and also formulate a mitigation model. One would need to make sure that the expert in question has strong technical skills which should allow one to easily understand the due diligence process which tends to be a complex process. See more process tips on management at https://ch.linkedin.com/in/nicolas-giannakopoulos-7a820018.

The expert in question should also in a position to identify all the potential causes of risk in the project in question. The expert should also be in a position to identify and analyze the environment under which the plant in question operates in. the experts ought to highlight all the potential consequences of risks. The expert in question should be knowledgeable enough to identify political risks, sovereign risks, technological risks, economic risks among other risks. The expert would need to perform a risk analysis with the intention of making sure that the senior management is aware of all possible pitfalls of the business in question.

The experts should also be in a position to ensure that they run a full risk profile by first defining the activities as well as activities of the project in question. The experts should then go ahead to ensure that they determine all the financial impacts of the project in question. The expert should then go ahead to make sure that he or she identifies all the risks accrued to the project. The experts then go further to determine the consequences of the risks then determine the likelihood of the risks in question. The experts can then determine the risk rating, identify mitigations and controls and then do an appraisal of their effectiveness. One can then assess the information available, reassess the risk rating and determine current residual risk. One can then figure out the acceptable residual risks before moving one to risk management decision. Find out some more information on risk management at http://www.o-c-o.net/communique-de-presse-press-release/.

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s