When aware of a potential merger, what should the risk practitioner primarily evaluate?

In the context of a potential merger, evaluating the impacts on risk assessment due to changes in business operations is crucial. Mergers often lead to significant transformations in how organizations operate, including alterations in processes, technologies, and personnel. These changes can introduce new risks or exacerbate existing ones, affecting the overall risk profile of the organization.

By focusing on the impacts on risk assessment, the risk practitioner can identify how the merger might affect operational risks, financial risks, compliance risks, and cybersecurity risks. Understanding these implications allows the organization to adequately prepare for the merger and address any vulnerabilities that may arise as a result of altered operations. This proactive approach ensures that risk assessments remain relevant and comprehensive, reflecting the new business landscape post-merger.

While other factors such as emerging new risks, existing risk program suitability, and the need for immediate changes are important considerations, they stem from a foundational understanding of how the merger affects business operations. Therefore, the primary evaluation should center on the implications of operational changes on risk assessment, as it informs all other aspects of risk management during a merger scenario.