Management and Organizational Studies 2275A/B Chapter Notes - Chapter 3: Legal Advice, Insurance Policy, Mit Technology Review

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Emphasis on compliance with legal requirements and anticipation of changes in the legal environment. A strategy in place to deal with legal problems that may materialize. These two approaches combined reduce the impact of legal risks. Legal risks: 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. Four step process: identify the legal risks, evaluate the risks, devise a risk management plan, implement the plan. Some possible risks that are in functional areas. Important to recognize that not all risks are alike, nor should they be treated alike. Risk avoidance: the decision to cease a business activity because the legal risk is too great. Risk reduction: implementation of practices in a business to lower the probability of loss and its severity. Transferring the remaining risk to another by contract. Risk retention: the decision to absorb the loss if a legal risk materializes.