Legal Risk Management

What is Legal Risk Management?

From the moment your company enters into a contractual relationship, you inevitably create legal risks. Legal Risk Management is the process of establishing and maintaining procedures for identifying and avoiding the consequences of legal risks. Failure to manage your legal risks effectively can result in civil and/or criminal sanctions being imposed by (inter)national judicial institutions.

Which Legal Risks do you run?

Regardless of size, specific areas of potential risk to a business include:

• Unauthorised representation;
• Conflicts among existing contractual arrangements;
• Anti-Trust and unfair business practices;
• Product liability;
• Regulatory compliance with respect to issues such as employees, share certificates and environmental issues.

Which particular contractual relationships carry Legal Risks?

Certain contractual relationships by nature carry particularly high levels of risk. Such relationships include:

• Mergers and joint ventures;
• Acquisitions and divestitures;
• Licensing Agreements.

How can you manage your Legal Risks?

Payton Business Legal Advice has developed a comprehensive system for analysing and managing the legal risks inherent in your business, which we refer to as "The Legal Audit". The Legal Audit is an analysis of all contracts and other legal documents which define a company's relationship with other companies and with Government organisations, and the legal risks inherent in these relationships.