Legal risk

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Legal risk

The risk associated with the impact of a defect in the documentation on cash flow or debt service.

Legal Risk

The potential loss that may occur to an investment as a result of insufficient, improperly applied, or simply unfavorable legal proceedings in the country in which the investment is made. For example, a country may have inadequate bankruptcy protection or, in an extreme circumstance, the government may be able to seize property without provocation. On the other hand, legal risk exists even in countries that operate under the rule of law: a court, for instance, may find against a company in a given lawsuit, creating a precedent for other companies with similar operations.
References in periodicals archive ?
Legal Risk Management Specialized Studies Program participants will learn to identify the main legal risks facing organizations today, examine prevailing risk management principles and guidelines, identify and analyze significant risks, create strategies to mitigate risks and monitor the effectiveness of existing risk management efforts.
The system will also create monitoring reports and management information to 'red flag' significant legal risks for the client company and supplier.
With the ever growing pervasion of the business world by social media such as Facebook, Twitter, LinkedIn and Pinterest, it is time for a comprehensive and detailed guide for non-attorneys to avoid possible legal risks.
Meanwhile, Ye is leading a task force (“Dratle Law Committee”) that aims to pioneer models through which corporations can evaluate legal risks and form strategies to optimize refined legal risk management ROI.
Summary: James Murdoch has admitted to the Leveson Inquiry that News International failed to pick up on legal risks
This financial crisis highlights the importance of the work by McCormick, daring because not even the financial markets understand the legal risks involved, and few lawyers, if any, would really understand the complexity of all the financial products.
Ten years ago, operational and legal risks would have been the most significant threat.
The better a firm understands the legal risks it must face, the better it will be able to plan to avoid, or at least to minimize, these risks.
Controller Laura Chick said the city has done a poor job of managing and averting potential lawsuits, and her office plans to evaluate how the city manages its legal risks.
The agencies issued the guidance because they were concerned that some institutions may not have an adequate understanding of the risks associated with bank-owned life insurance (BOLI), including liquidity, operational, reputational, and compliance or legal risks.
A features section carries articles on a variety of legal, medical and management issues, including such topics as medical non-compete agreements, serving as an expert witness, tort reform, legal risks of hosting a medical web site and Medicare reimbursement.