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