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

22 views2 pages
Published on 10 Oct 2012
School
Western University
Department
Management and Organizational Studies
Course
Management and Organizational Studies 2275A/B
Professor
Managing Legal Risks
Assessing the Legal Environment
Two Basic Approaches
Preventive
Emphasis on compliance with legal requirements and anticipation of changes in the
legal environment.
Reactive
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
Legal Risk Management Plan: A comprehensive action plan for dealing with the legal risks
involved in operating a business.
Four step process:
1. Identify the legal risks
2. Evaluate the risks
3. Devise a risk management plan
4. Implement the plan
Applying the Four-Step Process
Identify the Legal Risks
Assess Functional Areas
Some possible risks that are in functional areas
Marketing
Production
Human Resources
Information Technology
Review Business Decisions
How are finances handled?
How are the contracts worded?
Ownership and use of Land.
Decisions affecting personnel
Examine Business Relationships
Employees may create difficulties
Suppliers or lenders may complain
Regulators may press charges
Evaluate the Risks
Assess the probability of loss
Assess the severity of loss
Important to recognize that not all risks are alike, nor should they be treated alike.
Devise a Risk Management Plan
Avoid or eliminate the risk
Risk Avoidance: the decision to cease a business activity because the legal
risk is too great.
Unlock document

This preview shows half of the first page of the document.
Unlock all 2 pages and 3 million more documents.

Already have an account? Log in

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.

Get OneClass Grade+

Unlimited access to all notes and study guides.

YearlyMost Popular
75% OFF
$9.98/m
Monthly
$39.98/m
Single doc
$39.98

or

You will be charged $119.76 upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.