The research points to an element of risk that changes the approach taken to risk management with M&A transactions. The element of risk that poses a challenge for managing the integration of business operations is the high degree of interrelated risk.
When one risk is triggered, it tends to trigger additional risk exposure in one or more related areas which, in turn, triggers risk exposure in other related areas causing a chain reaction of events like falling dominoes. The impact is sequential, simultaneous, and cumulative creating relentless downward pressure on the key performance indicators.
This phenomenon places management in a reactive posture directing more and more time and attention to the recovery of internal operations and less and less focus on the business strategy until the strategy must be significantly altered or abandoned altogether.