A successful risk management strategy requires a strong internal control environment. The risk control matrix (RCM) format emphasizes that strong and risk-oriented internal control environments are often optimized with automated/manual controls, depending on the situation.

An RCM provides an overview of different control objectives that organizations should take into consideration and the corresponding controls to safeguard the company against risks, which may arise if not checked timely. Once customized to an organization, this document can help the user in assessing each control. The control assessment can then also be summarized to develop an action plan.

This document outlines risks and controls common to business acquisition during the 4.4.1. Manage Data Center Operations: Business Acquisition process in a risk control matrix (RCM) format.

Sample risks include:

• An asset acquired or liability assumed is not reflected on the opening balance sheet.
• An asset acquired or liability assumed is recorded at the incorrect amount.
• The company pays the wrong amount to a shareholder of the acquiree.
• An acquisition is completed, or a payment is made related to that acquisition, without appropriate authorization.
• The company does not properly record the earnout.

 This document can be used as a sample RCM and is not meant to be an exhaustive list of risks and controls. The KnowledgeLeader team will periodically update this RCM with new content. Organizations should select, update and modify the risks and controls included in this document to ensure that it reflects business operations.