Risks of Joint Ventures
Most of the risks associated with joint ventures can be managed by the effective use of various dispute resolution techniques. Methods such as mediation and arbitration can help balance the pros and cons of joint ventures. Some of the major risks involved with joint ventures are (Prowse Chowne LLP Team):
- Lack of precision in terms of the obligations and responsibilities of each individual partner.
- Difference in management styles of each partner that inevitably results in conflict.
- An imbalance in the capital and resources invested by the partners leading to frequent arguments and conflicts of interest.
- Ineffective resolution of conflict.