MCS 3040 Chapter Notes - Chapter 3: Debt Management Plan, Insurance Policy, Writer
17 Oct 2014
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Document Summary
Legal risks: a business risk with legal implications. Legal risk management plans: a comprehensive action plan for dealing with the legal risks involved in operating a business. Risk avoidance: ceasing a business activity because the legal risk is too great. Risk reduction: implementing practices in a business to lower the probability of loss and its severity. Risk transference: shifting the risk to someone else through contact. Risk retention: absorbing the loss if a legal risk materializes. Lawyer: a person who is legally qualified to practise law. Both are combined in a management plan that reduces the impact of legal risks on the organization: preventative, requires a thorough evaluation of the risks associated with the businesses" activities in order to minimize their impact. Identify the legal risks: evaluate the risks, devise a risk management plan. Identify the legal risks (1: methods to identify legal risks. Analyze the organizations operations and transactions: evaluate the risks (2, checklist.
