Management and Organizational Studies 2275A/B Chapter Notes - Chapter 3: Formal System, Insurance Policy, Self-Insurance

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

Document Summary

To ensure the smoothest possible operation of these systems, the business also needs to deal effectively with the legal environment. Managing the intersection of law with an organization"s activities requires an assessment of legal risk. Enterprise risk management the process of identifying and managing all business risk. Legal risk management attempts to identify and then manage threats that could generate negative legal consequences. Larger businesses may have a department headed by a senior manager with a title such as risk officer or compliance officer, to organize and oversee this process. In smaller organizations, the risk management function may be performed by the chief executive or delegate or even by someone outside the organization. Creating a legal risk management plan is a four step process. Identify the legal risks: evaluate the risks, devise a risk management plan. It is not possible to identify all risks. The goal however is to be reasonably certain that no significant risks have been overlooked.