I just want to share a sharing session by Mr Iria Izham from UTM about Legal Risk Management.
Legal risk can be defined as where the source or consequence is legal in nature (the change in circumstances have legal effects).
Legal Risk Management (LRM) is important to control and manage the legal risks of an organization. An organization or company will exposed to claims, lawsuits, fines, and investigations if there are inadequate LRM processes.
There are four types of legal risks namely:
a) contracts
b) litigations
c) regulations
d) structural changes to the market
Legal risk assessment can be categorised into four phases:
- Phase 1: identification of risk through workshop and inteviews
- Phase 2: risk scoring
- Phase 3: critical analysis
- Phase 4: implementation of Action Plan