Risk Management
/ˈrɪsk ˈmænɪdʒmənt/
Definitions
- (n.) The identification, assessment, and prioritization of legal and operational risks followed by coordinated efforts to minimize, monitor, and control their likelihood or impact.
Effective risk management is essential for ensuring corporate compliance with regulatory requirements.
- (n.) A framework employed by organizations to mitigate exposure to financial, legal, and reputational liabilities through policies and procedures.
The company implemented a comprehensive risk management strategy to reduce potential litigation costs.
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Commentary
Risk management in legal contexts often involves balancing regulatory adherence and exposure to liability; precise documentation is key for defensibility during disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.