Chapter 3 - Manging Legal Risks

Question 1

Assess the probability of loss. Assess the severity of loss.

Answer 1

Step 2: Evaluate the risks

Question 2

Avoid or eliminate the risk. Reduce the risk. Transfer the risk. Retain the risk.

Answer 2

Step 3: Devise a risk management plan

Question 3

Carry out the plan. Monitor and revise the plan

Answer 3

Implement the plan.

Question 4

React quickly and positively, but not so quickly that you are put into a negative legal situation

Answer 4

React when Prevention Fails

Question 5

Consulting lawyers too soon and too often is expensive and cumbersome. Consulting lawyers infrequently to save money may end up more expensive in the long run.

Answer 5

When to seek legal advice

Question 6

Assess the organizations functional areas. Review the organizations business decisions. Examine the organizations business relationships. Analyze the organizations transactions

Answer 6

Step 1: Identify the legal risks