Management and Organizational Studies 2275A/B Chapter Notes - Chapter 3: Legal Risk, Call Centre, Self-Insurance

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

Document Summary

Costly in terms of the expense of legal services and damage claims. Harmful in terms of relationships and reputation in the industry. Legal risk: a business risk with legal implications: the process of developing a legal risk management plan is called enterprise risk management. Both need to have a close eye kept on them should not be treated alike. Some can affect liabilities often but their financial and legal impact is relatively small. Businesses use this assessment to determine priorities of risk management. Risk reduction: implementing practices in a business to lower the probability of loss and its severity, involves introducing policies, practices and procedures to reduce the probability of an event occurring. Should also be clearly written and legally enforceable. Risk retention: absorbing the loss i a legal risk materializes, appropriate when the cost of avoiding or transferring a risk is greater than the impact on the business if the risk occurs.