Risk review does not mean rejecting an opportunity. It makes assumptions, weaknesses and the cost of error visible.
1. Know the counterparty
Identity, signing authority, asset ownership, company history and previous obligations should be supported by verifiable documents.
2. Match the contract to the actual transaction
Scope, price, timing, termination, delay responsibility, dispute resolution and controlling language should be clear.
3. Separate cash flow from valuation
A project may look valuable but generate no cash for a long period. The timing of inflows and outflows should be modelled.
4. Write the exit scenario
- Who may buy the asset or interest?
- What costs or limits apply to exit?
- What happens if the partner does not cooperate?
- What happens if currency or demand changes?
5. Document the decision
Record assumptions, documents reviewed, unresolved points and conditions for proceeding. This reduces decisions driven by urgency or verbal promises.
This article provides general information and is not a substitute for individual legal, financial or banking review.