Risk Management is the act of identifying, analyzing, controlling and responding to viable risk factors that can negatively affect an organization. These risk factors can be rooted from financial instability, natural and man-made disasters, technological problems, management miscalculation and other corporate dilemmas. The effectiveness of risk management strategies can be gauged based on their abilities to minimize probable risks and reduce their detrimental impacts within an organization or company.
What Is Legal Risk?
Basically, legal risks are risks that an organization faces in regards to legal matters. These are mainly brought by failure to comply with laws, rules and regulations mandated by the government and other governing bodies that supervise business entities. There are other instances wherein legal risks are due to lack or scarcity of knowledge, or even a misunderstanding of how laws work within a business environment. Some factors that can make an organization incur some legal risks are intellectual property rights, copyright violations, business connections, assets and liabilities and patents, just to name a few.
What Are Some Potential Legal Risks?
For an organization to thrive, one must keenly identify and address possible legal risks. By doing so, the organization can prevent these from happening, or if they happen, mitigating the consequences is at little to no cost. Identifying risks can protect the organization from financial loss or damaged reputation in the long run. Below are some potential legal risks managements that both large and small organizations should be aware of:
There are numerous factors that can contribute to a company’s success. These factors should work with one another as one’s success or failure can affect the organization as a whole. Today, businesses have been savvy enough to leverage different third parties to help them achieve a different level of success.
DivinaLaw is a reputable risk management law firm in the Philippines that offers a wide range of legal services to help clients understand and navigate the complexities of laws in relation to business and organization management.