Chapter 3 Flashcards
1
Q
Legal Risk Management
A
fines, penalties, compliance orders, license suspension, liability to pay money (all within enterprise risk management as well)
2
Q
Risk Avoidance
A
the risk may simply be too great
3
Q
Risk Reduction
A
most common, some risks cannot be avoided because they are inherent in the nature of business
4
Q
Risk Transference
A
most losses can be insured
5
Q
Risk Retention
A
one may decide to carry the risk if the cost of transferring or reducing the risk is too high
6
Q
Legal Risk
A
a business risk with legal implications
7
Q
Enterprise Risk Management
A
the process of identifying and managing all business risks
8
Q
Lawyer
A
A person who is legally qualified to practice law
9
Q
Law firm
A
a partnership formed by lawyers
