In a merger, what presents the greatest risk if independent projects continue without coordination?

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In a merger, if independent projects continue without coordination, the greatest risk involved is inefficient allocation of resources. When projects operate in isolation, there is a significant chance that multiple teams will work on similar tasks or initiatives, which can lead to waste and redundancy. Without coordination, resources such as time, finances, and personnel may not be optimally utilized, causing some projects to be overfunded while others might be under-resourced.

Furthermore, when projects are not aligned with the broader organizational goals established post-merger, it can lead to miscommunication, duplicated efforts, and conflicts over resource distribution. The lack of an integrated approach can negatively impact project timelines, escalate costs, and ultimately jeopardize the success of the merger as alignment of strategic initiatives becomes crucial in a unifying organizational structure. Therefore, the greatest risk is indeed related to the inefficient allocation of resources that arises when independent projects lack proper coordination in a newly merged entity.

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