- Risk Busters: Everyday Risk Management Strategies
- April 19, 2013
- Law Firm: Barley Snyder - Lancaster Office
Businesses and individuals are constantly exposed to legal risks that challenge the ability to achieve goals, or threaten to undermine hard earned achievements. Developing an effective plan for managing legal issues is an important aspect of achieving success and avoiding potentially costly problems. Risk management involves identifying and assessing potential legal issues and taking action to minimize or control the probability or impact of those legal issues.
Risk Management Creates Value
Often times, risk management creates value for businesses because the cost of managing potential legal risks is far less than the cost of inaction. Risk management strategies can reduce the severity of legal issues or reduce the probability that legal issues will arise. The old saying, “an ounce of prevention is worth a pound of cure” is suitable to describe the potential benefits of cost-effective risk management strategies. Too often, however, businesses underestimate the cost of inaction when it comes to managing their legal risks.
Court Room Experience Drives Insight
Identifying legal risks and assessing their probability and potential impact is critically important to all businesses. Barley Snyder’s Litigation Group has experience litigating a wide array of matters in numerous courts. Through these experiences, we have gained insight on the legal risks faced by businesses and invaluable understanding of how businesses can best weather the risk of loss and prevail in situations of conflict. Our experience allows us to spot potential legal risks, assess the likelihood and consequences posed by the risks, and develop cost-effective strategies to manage the countless legal risks faced by businesses today.
There are three main strategies that help cope with legal risk. First, individuals and businesses can manage their risk by utilizing insurance to transfer or share the risk. Second, individuals and businesses can utilize contractual provisions to limit certain risks or control the manner of resolving disputes. Lastly, individuals and businesses can spot legal issues and tailor their actions to avoid, mitigate, or plan for the identified risks. Future Risk Busters articles will focus in more detail on how businesses can effectively and efficiently utilize the previously mentioned risk management strategies to achieve their goals and avoid costly legal problems.