The Importance of Legal Risk Management
What is Legal Risk Management?
Effective legal risk management involves the development of suitable strategies to proactively control legal risks and opportunities. Legal risk management has become an ever increasing vital component of every business. The key object of legal risk management is to aid businesses in avoiding operational risks becoming legal liabilities.
Legal risk management is best used when its purpose is to identify, analyse and manage legal risks affecting a specific business in an organised and consistent way. An example of a legal risk is the circumstances which could arise when entering into supply contracts, whereby the business engages services or products to be provided by an external third party.
It has the potential to affect all areas of business and is the concern of every employee, shareholder and stakeholder in an organisation.
Why is it beneficial to a business?
Legal risk management is vital to any business as it can remove any uncertainties in relation to the business operation of an entity, thereby preventing legal liability in the future. An effective legal risk management program will ensure that the business can avoid costs associated with any financial risks.
Advantages
- identify legal threats and opportunities;
- circulate legal knowledge;
- put into practice legal risk controls; and
- provide measures of prevention success.
With a strong risk management process in place, businesses have the capability to decrease their financial and legal exposures and are in a superior position to make clear and well informed business decisions.
Want my view on your own situation?
Book an initial consultation: up to two hours with me by phone for a fixed fee of $1,650 (including GST), then a short written note of my advice and next steps. If my conflict check means I can't act, I'll refund your fee in full. To check anything first, email
info@klaw.com.auor call
(07) 3103 3199.
Joe Kafrouni, Accredited Specialist in Business Law, Kafrouni Law
Disclaimer: This article is general information only and is not legal advice. Before acting on it, get advice on your own circumstances. To the extent the law allows, Kafrouni Law accepts no liability for any loss arising from reliance on it. This article is the copyright of Kafrouni Law.
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An initial consultation is the best way for us to find out whether, and how, I can help. It suits business owners and directors facing a decision that matters. You get my considered view of your situation, not just a first impression.
The fee is a fixed $1,650 (including GST). It covers a phone consultation of up to two hours, plus up to one hour of my time to consider the material you send me beforehand and to prepare my written note afterwards. Here is how it works:
1. When you book, you tell me briefly what the matter is about and who else is involved, so I can carry out a conflict check and confirm I’m free to act. If I can’t act for you, I’ll refund your fee in full.
2. I tell you what information and documents I’d like to see, and I consider them before we speak.
3. We talk it through by phone. I give you my initial advice, the options I see and what I’d do in your shoes.
4. Afterwards, I send you a short written note of my advice and the next steps I recommend.
If I can help further, I’ll explain how. If I can’t, I’ll say so. You are under no obligation to engage me further. If your matter needs more than this, I’ll send you a proposal setting out how I can help and an estimate of my fees. No further work starts until you accept it.
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