Which of the following approaches should the risk manager of Company XYZ recommend?

Company XYZ is in negotiations to acquire Company ABC for $1.2millon. Due diligence activities
have uncovered systemic security issues in the flagship product of Company ABC. It has been
established that a complete product rewrite would be needed with average estimates indicating a
cost of $1.6millon. Which of the following approaches should the risk manager of Company XYZ
recommend?

Company XYZ is in negotiations to acquire Company ABC for $1.2millon. Due diligence activities
have uncovered systemic security issues in the flagship product of Company ABC. It has been
established that a complete product rewrite would be needed with average estimates indicating a
cost of $1.6millon. Which of the following approaches should the risk manager of Company XYZ
recommend?

A.
Transfer the risk

B.
Accept the risk

C.
Mitigate the risk

D.
Avoid the risk



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