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Legal Management Risk Management

Add Date:2015/7/1 Hits:784 Font Size:S M L BACK

In the business survival of the social environment, the rule of law is the basic feature of this environment, the operation of the company as the main body of society, how to conduct legal risk management, to avoid breaking the law and the use of legal means to safeguard the interests of enterprises has become a must.


Corporate legal risk is the risk of potential financial loss or other damages borne by an enterprise, its categories include: operating loss (gain or loss of profits, costs or increased liability, etc.); civil claims, judgments or awards (including the defense and settlement costs); administrative or criminal penalties or sanctions; corporate assets (both tangible and intangible property) damage; goodwill impairment; other damage.


Cause of such loss and damage include: enterprise violates relevant laws; businesses violate the legal rights of third parties; enterprise failed to take effective measures to obtain, protect or exercise their legitimate rights and interests.


Legal risks of implementing all aspects of the enterprise, the company is concerned, its pivotal role in society, they are often in the focus of attention, which is the company's legal risk management capabilities presents a great challenge.


For legal risks facing the company should establish a modern enterprise legal governance system, the establishment of an independent legal affairs, in order to enable enterprises to adopt unified the various departments and subsidiaries of the preventive and remedial measures ordered against legal risks faced and regularly prioritize legal risk and legal risk management measures to be evaluated. Legal Affairs should assist senior management personnel management legal risks. Legal Affairs led by the General Counsel, General Counsel belong to the senior management of an enterprise. General Counsel should work with other senior management personnel, joint development of enterprise legal risk management strategic plan and review of senior management in accordance with arrangements to update. Relevant senior management ability to effectively review and update legal risk management strategic plan should be part of their performance evaluation.


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