Learn a pragmatic method to identify, analyze, and manage all kinds of business risk, such as legal risk, contract risk, and operational risk.
Introduction to Risk and Risk Management
This video series makes your business better with risk management. Take practical steps to understand risks before they land on your bottom line. This approach to risk management can help businesses of all sizes and in any industry. There are plenty of examples particularly for legal and operational risks.
In this video, we look at the method for assessing legal risks. This video outlines the steps to spot and rate legal risks. We will also cover risk treatment or risk mitigation. There are five key terms for this chapter: assessment, identification, analysis, evaluation, and treatment.
To identify risks is to look for, imagine, and dig up potential problems and then put them on a list. Risk identification does not need to be more complicated. At this stage of the process more is definitely better; later less will be more. Lawyers refer to this process as "issue spotting." The objective is to brainstorm risks.
In risk analysis, we probe the depths of a single risk. It is an investigation of a risk that results in a rating and input for risk evaluation. Risk analysis values depth over breadth. In a risk analysis, we want to rate the likelihood and consequences of a risk event. Now you might ask, “But we did that during the risk identification?”
Effective risk assessments require collaboration among domain experts and those with access to necessary information. The risk management framework should address the communication plan for risk management in general.