How to manage legal risk
Produced in partnership with Elizabeth Bourlet

The following Risk & Compliance practice note produced in partnership with Elizabeth Bourlet provides comprehensive and up to date legal information covering:

  • How to manage legal risk
  • Why is risk management important?
  • What is risk?
  • Different types of business risk
  • What is legal risk?
  • Narrow approach
  • Broad approach
  • Identifying legal risks
  • Measuring, managing, monitoring and reporting
  • Measuring
  • More...

How to manage legal risk

It is often said that running a business means taking risks and that the biggest risk an entrepreneur can take is not to think about risk at all. A prudent organisation identifies the risks to which it is exposed and controls those risks where possible.

This Practice Note aims to help you to understand what is meant by legal risk and provides practical guidance on how to manage legal risk. It is intended for in-house lawyers of commercial organisations based in the UK.

Most of the best practice steps in basic legal risk management will be second-nature to seasoned in-house lawyers. These are probably things that you do all the time, as part of your day-to-day job. However, the growth of risk management as a strategic business tool, combined with the increasing expectation that the in-house lawyer will be actively involved in formal risk management processes require you to step back from approaching legal risk management as a reactive day-to-day activity.

Proactive and strategic legal risk management necessitates consideration of wider legal issues, such as those impacting on reputation, operations, business finance and the organisation’s general ability to do business.

The legal risk profile of your organisation should influence:

  1. the strategy and operating model for legal department

  2. where legal resource should be invested and focused

  3. which activities the legal department should manage and which

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