MANAGEMENT

Detailed explanation-1: -Legal risk is the risk of financial or reputational loss that can result from lack of awareness or misunderstanding of, ambiguity in, or reckless indifference to, the way law and regulation apply to your business, its relationships, processes, products and services.

Detailed explanation-2: -Disputes – One of the most common types of legal risk is a dispute. This is a term that is used to describe when a legal claim is made against your business. There are so many different types of corporate legal claims, including those involving product liability, accidents in the workplace, and employee misconduct.

Detailed explanation-3: -Operational risk has been defined by the Basel Committee on Banking Supervision1 as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This definition includes legal risk, but excludes strategic and reputational risk.

Detailed explanation-4: -Legal risk management refers to the process of evaluating alternative regulatory and non-regulatory responses to risk and selecting among them. Even with the legal realm, this process requires knowledge of the legal, economic and social factors, as well as knowledge of the business world in which legal teams operate.