Managing Legal Risks

Hello, and welcome to LegalEase. Today’s topic is about managing corporate legal risks. How does a corporation manage its legal risks? Let’s talk about it.

Corporations often assess their financial risks and reputational risks, but they tend to forget about assessing legal risks. Legal risks are just as important because they can cause significant economic damage to corporations. What is a legal risk?  A legal risk is the risk of litigation due to noncompliance. Many companies don’t comply with the law simply because they don’t understand the law and don’t take time to figure it out or to hire someone to help them figure it out. Legal risks can range anywhere from intellectual property violations to contract issues to tax violations.

How can a company manage these legal risks?

  • Take steps to identify, prevent, and respond to legal risks. This can be done through annual legal audits, which can include something as simple as having your policy manual reviewed or  having your corporate contracts reviewed.
  • Check-in with managers. Do the managers need more training? Are the mangers  implementing the policies and procedures properly, or are they just doing what they want to do when they want to do it?

We realize  it is not easy in today’s climate for corporations to conduct annual audits and assessments, but it is extremely important to do because litigation can cause significant economic hardship to a company. We get it. You have cybersecurity issues to deal with, increased regulations, AI issues, etc.  Remember, managing legal risks is just as important.

If you need help assessing your legal risks or conducting a legal audit, give us a call. Our link is always in the bio, and you can schedule a consultation on our website. Thanks for joining LegalEase.