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Legal Risk
There are
so many sources of legal risk... and it is so
difficult to manage these risks.
In risk management, we always speak about
the possibility
that an event will occur and
the impact, the practical
consequences, should that possibility
come to pass.
There is a blind point:
Low Frequency / High Impact events.
Legal risk is an area full of this kind of
events.
►There
are
risks related to legal
uncertainties.
As an expert witness, I can assure you that
most of the current
transnational agreements will not stand in
court.
Complex transactions... problems with judicial
and arbitral enforcement of contracts... lack of
administrative transparency... corruption...
insecure or undefined property rights... social
and political risks...
►There
is a huge risk that is called
negligence.
One of the
employees of your company
failed to exercise the
standard of care that a reasonable person
would have exercised under the same
circumstances...
1.
He
had a duty or reasonable standard of
care. Professionals are held to a higher
standard of care than the average person in
society.
2. There was
breach of duty, or
"negligence".
3.
Someone suffered from that, for example
there is an injury, accident, death
etc. There are physical damages (like personal
injury), economic (like financial loss), or both
(like financial loss consequent on a personal
injury).
4. The negligence
was the "proximate cause"
of the harm - without that negligence nobody
would suffer.
5.
Only
reasonably foreseeable
damage
may be recovered by an action in negligence.
What is reasonable? This is the responsibility
of the expert witnesses, to explain.
►Negligence...
►Negligence
to protect intellectual property assets.
►Negligence
that leads to liability to shareholders.
►Negligence
to take proper account of employment law or of
the rights of employees or trade unions.
►Negligence
to take warranties from counterparty, relying on
due diligence procedures.
►Negligence
to do what you have promised, because of a
technical defect, lack of capacity, because of a
"trusted" third party.
►Negligence
to assess the possible liability from what you
produce or do.
Negligence that
leads to legal proceedings with adverse
consequences greater than expected
Attorneys... another source of legal risk!
Lawsuits wilt
multi-million dollar fees motivate attorneys.
For more information: Go to Next Page
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