Management and Organizational Studies 2275A/B Chapter Notes - Chapter 3: Enterprise Risk Management, Debt Management Plan, Step One

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

Document Summary

Analyze and evaluate its activities, forecast changes in the business environment, and react effectively to unexpected developments. Balance between managing the present and planning for the future. Reduce the likelihood and impact of mistakes that are: costly of the expense of legal service and damage claims, distracting in terms of time and effort, harmful in terms of relationships and reputation in the industry. Preventive approach requires a thorough evaluation of the risks associated with the business"s activities in order to minimize their impact. The reactive approach recognizes that legal problems that may still materialize, so the firm needs a strategy in place to deal with such developments. Legal risk: a business risk with legal implications. Legal risk management plan: the process is often part of a broader exercise in which all risks within an organization including those with legal implications, are assessed and managed, enterprise risk management. Other risks materialize infrequently, but when they do, their impact is severe.