Management and Organizational Studies 2275A/B Lecture Notes - Lecture 3: Human Resources, Insurance Policy, Formal System
2 Mar 2018
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Document Summary
Two basic approaches: they are combined in a management plan that reduces the impact of legal risks on the organization: preventive. Re(cid:395)ui(cid:396)es a tho(cid:396)ough e(cid:448)aluatio(cid:374) of the (cid:396)isks asso(cid:272)iated (cid:449)ith the (cid:271)usi(cid:374)ess" activities in order to minimize their impact. The emphasis is on compliance with legal requirements and anticipation of changes in the legal environment: reactive. Legal problems may still materialize, so the firm needs a strategy in place to deal with such developments. Legal risk: a business risk with legal implications. Legal risk management plan: a comprehensive action plan for dealing with the legal risks involved in operating a business. Often part of a broader exercise called enterprise risk assessment. Attempts to identify and then manage threats that could generate negative legal consequences. Requires an understanding of what could happen, how it could happen, and how its impact could be most effectively managed. A risk which is not identified cannot be managed.
