COMM231 Chapter Notes - Chapter 3: Legal Risk, Crisis Management, Financial Statement
30 Jan 2016
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Document Summary
It will help you understand the interaction of law and business and will be useful for the project with afm 280. The difference between risk management and risk avoidance is also introduced. When working through this chapter you should reflect on the question when lawyers should be brought into a business matter, a question for which there is never an easy answer. This broad issue will be explored further in project with afm 280. Legal risk: business risk with legal implication. Business must be able to analyze and evaluate its activities, forecast changes in. 2 basic approaches: preventive and reactive: preventive: requires a thorough evaluation of the risks associated with the business" activities, in order to minimize the impact. Emphasis on compliance with legal requirements and anticipation of changes in the legal environment: reactive: recognizes that legal problems may still materialize, firm needs a strategy in place to deal with them.
