396:
22:
780:: These are the risks that arise out of regulations and laws that govern a business organization or the market in which it operates. Every country and the government lays down certain laws and regulations for the proper operations of the businesses. And all the businesses have to comply with those rules and regulations of the land. Moreover, any non-compliance can have serious consequences for any organization. Therefore
668:
since it is recognized as the most significant category of operational loss events and considered to be a legal issue as well. This, however, does not mean that legal risk is only confined to this conceptualization. For instance, there are specific sets of legal risks that are defined by
European
688:
Hazard is intrinsic in any business undertaking, and great danger management is a fundamental part of maintaining a fruitful business. An organization's management has shifting degrees of control concerning hazards. A few dangers can be straightforwardly overseen; different dangers are largely
825:
Legal risk can lead to fines and administrative penalties, the need for monetary damages, deterioration of reputation, deterioration of the bank's market position, narrowing opportunities for development, reducing the opportunities for development or legal enforcement of agreements.
767:
The cost and loss of income caused by legal uncertainty, multiplied by possibility of the individual event or legal environment as a whole. One of the most obvious legal risks of doing business not mentioned in the above definitions is the risk of arrest and prosecution.
758:
Legal risk is the risk of financial or reputational loss that can result from lack of awareness or misunderstanding of, ambiguity in, or reckless indifference to, the way law and regulation apply to your business, its relationships, processes, products and services.
689:
outside the ability to control organization management. Everything an organization can manage is to attempt to expect potential dangers, survey the possible effect on the organization's business, and be ready with an arrangement to respond to unfavorable occasions.
737:
Management of legal risk is not a precise science and subjective to the situation of the institution, and primarily caused by the lack of proper communication channel, undefined institutional objectives (such as the lack of policies and regulations), unclarified
684:
Further developing legitimate risk the board for any organization does not require many steps. This process won't prevent each lawsuit or administrative punishment, however, it can reduce lawful risks and enhance the organization's responses.
1066:
Masip, Gemma; Sabalza, Maite; PĂ©rez-Massot, Eduard; Banakar, Raviraj; Cebrian, David; Twyman, Richard M.; Capell, Teresa; Albajes, Ramon; Christou, Paul (2013). "Paradoxical EU agricultural policies on genetically engineered crops".
796:: The potential for a partner, customer or supplier to fail to meet the terms of a contract resulting in losses. Contract risk can also result from the failure to meet the terms of a contract resulting in penalties or legal disputes.
653:. The idea is that businesses do not operate in a vacuum and in the exploitation of opportunities and their engagement with other businesses, their activities tend to become subjects of
1005:
223:
625:
201:
987:
944:
366:
106:
1134:
284:
250:
101:
66:
1581:
739:
709:(b) a claim (including a defense to a claim or a counterclaim) being made or some other event occurring which results in a
245:
196:
618:
902:
877:
852:
710:
919:
1449:
742:
between different personnel and department, lack of delegation of power to specify task on mitigation of risks.
649:
in 2003. This conception is based on a business perspective, recognizing that there are threats entailed in the
1728:
1531:
697:
There is no standard definition, but there are at least two primary/secondary definition sets in circulation.
611:
359:
342:
289:
1127:
1414:
1306:
895:
Legal Risks in EU Law: Interdisciplinary
Studies on Legal Risk Management and Better Regulation in Europe
257:
1478:
790:: The potential for fines and penalties for an organization that fails to comply with laws regulations.
1802:
1566:
1147:
1424:
1389:
781:
352:
279:
233:
96:
91:
395:
1797:
1733:
1454:
1439:
1394:
1381:
1120:
1069:
1812:
1429:
1112:
169:
1052:
1031:
333:
1807:
1771:
1673:
1646:
1631:
1399:
1254:
1175:
1022:"Experience from the Anti-Monopoly Law Decision in China (Cost and Benefit of Rule of Law)".
724:
670:
422:
1776:
1708:
1698:
1653:
1586:
1419:
1170:
8:
1766:
1723:
1234:
650:
218:
164:
35:
Please help update this article to reflect recent events or newly available information.
1743:
1738:
1718:
1606:
1409:
1367:
1264:
1190:
673:
declared that it will develop its own legal risk definition to help "facilitate proper
664:
One of the primary reasons why legal risk is associated with operational risk involves
590:
445:
417:
1621:
1611:
1601:
1556:
1551:
1505:
1501:
1474:
1404:
1321:
1195:
1185:
1098:
1090:
1039:
1027:
898:
873:
848:
812:
549:
427:
713:
for the institution or other loss (for example, as a result of the termination of a
174:
1658:
1576:
1526:
1509:
1434:
1298:
1283:
1082:
646:
554:
493:
307:
274:
1086:
1693:
1668:
1626:
1616:
1591:
1571:
1561:
1274:
1238:
1180:
802:: The potential for a third party to infringe on its non-contractual obligations.
678:
674:
654:
512:
470:
412:
148:
135:
130:
808:: The potential for a legal dispute to arise as a result of business activities.
1641:
1497:
1493:
1484:
1352:
1331:
1279:
1269:
1259:
1249:
1218:
1200:
1143:
967:
Roger McCormick. "Legal Risk in the
Financial Markets", Oxford University Press
599:
564:
531:
526:
503:
484:
465:
450:
387:
312:
206:
184:
179:
976:
Roger McCormick. "The
Management of Legal RIsk by Financial Institutions", RSM
705:
Legal risk is the risk of loss to an institution which is primarily caused by:
1791:
1748:
1636:
1546:
1536:
1489:
1469:
1362:
1311:
1094:
540:
475:
455:
71:
1703:
1688:
1464:
1326:
1287:
1102:
681:, as well as ensure a consistent approach between EU credit institutions."
574:
559:
498:
267:
262:
211:
139:
1753:
1713:
1459:
1444:
1357:
1244:
1222:
1210:
1162:
583:
460:
436:
403:
240:
191:
1316:
1230:
1226:
1078:
658:
521:
1683:
86:
1541:
714:
638:
81:
816:: The potential of the decline of reputation due to legal actions.
1596:
126:
76:
1142:
945:"What Are the Major Categories of Financial Risk for a Company?"
1663:
1065:
920:"6 Steps to Legal Risk Management | Risk Management | Articles"
847:. Chichester, West Sussex: John Wiley & Sons. p. 435.
720:
665:
1678:
144:
845:
Simple Tools and
Techniques for Enterprise Risk Management
719:(c) failing to take appropriate measures to protect
1789:
1059:
892:
1128:
619:
360:
872:. New York: Palgrave Macmillan. p. 95.
58:International regulatory standards for banks
893:Mišćenić, Emilia; Raccah, Aurélien (2016).
1135:
1121:
942:
626:
612:
367:
353:
970:
778:Regulatory Risks turning into legal risks
750:The expenses of litigation of a company.
1006:"Legal risk 2.0: Show you're in control"
961:
842:
1790:
979:
67:Basel Committee on Banking Supervision
1116:
867:
1015:
15:
13:
917:
784:may be used to mitigate this risk.
14:
1824:
1410:Conditional Value-at-Risk (CVaR)
394:
20:
985:
897:. Berlin: Springer. p. 6.
820:
707:(a) a defective transaction; or
1729:Strategic financial management
1532:Asset and liability management
998:
936:
911:
886:
861:
836:
727:) owned by the institution; or
692:
651:business operating environment
1:
1087:10.1016/j.tplants.2013.03.004
829:
669:Union (EU) Law. In 2005, the
343:Business and Economics Portal
300:Pillar 2: Supervisory review
157:Pillar 1: Regulatory capital
7:
1307:Operational risk management
870:Operational Risk Management
746:Johnson & Swanson. 2007
326:Pillar 3: Market disclosure
10:
1829:
1479:Proportional hazards model
1430:Interest rate immunization
1762:
1519:
1380:
1345:
1297:
1209:
1161:
1154:
1148:financial risk management
29:This article needs to be
1425:First-hitting-time model
1390:Arbitrage pricing theory
843:Chapman, Robert (2011).
782:legal expenses insurance
771:
1734:Stress test (financial)
1440:Modern portfolio theory
1070:Trends in Plant Science
800:Non-contractual Rights
1772:Investment management
1674:Investment management
1400:Replicating portfolio
1176:Sovereign credit risk
725:intellectual property
671:European Central Bank
1777:Mathematical finance
1709:Risk-return spectrum
1699:Mathematical finance
1654:Fundamental analysis
1587:Exchange traded fund
1171:Consumer credit risk
868:Moosa, Imad (2007).
1767:Financial economics
1724:Statistical finance
1490:Value-at-Risk (VaR)
1395:Black–Scholes model
1235:Holding period risk
729:(d) change in law.
165:Capital requirement
1744:Structured product
1739:Structured finance
1719:Speculative attack
1405:Cash flow matching
1368:Non-financial risk
1265:Interest rate risk
1191:Concentration risk
733:McCormick, R. 2004
701:McCormick, R. 2004
591:Non-financial risk
446:Interest rate risk
418:Concentration risk
1785:
1784:
1557:Corporate finance
1552:Capital structure
1506:Cash flow at risk
1502:Liquidity at risk
1475:Survival analysis
1376:
1375:
1322:Reputational risk
1196:Credit derivative
1047:Missing or empty
924:Berkman Solutions
813:Reputational risk
655:legal liabilities
636:
635:
550:Reputational risk
377:
376:
59:
50:
49:
1820:
1803:Operational risk
1659:Growth investing
1577:Enterprise value
1527:Asset allocation
1510:Earnings at risk
1492:and extensions (
1435:Market portfolio
1299:Operational risk
1284:Refinancing risk
1159:
1158:
1137:
1130:
1123:
1114:
1113:
1107:
1106:
1063:
1057:
1056:
1050:
1045:
1043:
1035:
1019:
1013:
1012:
1010:
1002:
996:
995:
983:
977:
974:
968:
965:
959:
958:
956:
955:
943:J. B. Maverick.
940:
934:
933:
931:
930:
915:
909:
908:
890:
884:
883:
865:
859:
858:
840:
754:Whalley, M. 2016
740:information flow
647:operational risk
628:
621:
614:
555:Operational risk
494:Refinancing risk
398:
379:
378:
369:
362:
355:
308:Economic capital
275:Operational risk
57:
55:Basel Framework
52:
51:
45:
42:
36:
24:
23:
16:
1828:
1827:
1823:
1822:
1821:
1819:
1818:
1817:
1788:
1787:
1786:
1781:
1758:
1694:Systematic risk
1592:Expected return
1572:Economic bubble
1567:Diversification
1562:Cost of capital
1515:
1372:
1341:
1293:
1275:Volatility risk
1239:Price area risk
1205:
1181:Settlement risk
1150:
1141:
1111:
1110:
1064:
1060:
1048:
1046:
1037:
1036:
1021:
1020:
1016:
1008:
1004:
1003:
999:
984:
980:
975:
971:
966:
962:
953:
951:
941:
937:
928:
926:
916:
912:
905:
891:
887:
880:
866:
862:
855:
841:
837:
832:
823:
788:Compliance Risk
774:
728:
718:
708:
706:
695:
679:risk management
675:risk assessment
645:as a subset of
632:
513:Investment risk
471:Volatility risk
413:Settlement risk
373:
149:Risk management
136:Monetary policy
56:
46:
40:
37:
34:
25:
21:
12:
11:
5:
1826:
1816:
1815:
1810:
1805:
1800:
1798:Financial risk
1783:
1782:
1780:
1779:
1774:
1769:
1763:
1760:
1759:
1757:
1756:
1751:
1746:
1741:
1736:
1731:
1726:
1721:
1716:
1711:
1706:
1701:
1696:
1691:
1686:
1681:
1676:
1671:
1666:
1661:
1656:
1651:
1650:
1649:
1644:
1639:
1634:
1629:
1624:
1619:
1614:
1609:
1604:
1594:
1589:
1584:
1579:
1574:
1569:
1564:
1559:
1554:
1549:
1544:
1539:
1534:
1529:
1523:
1521:
1520:Basic concepts
1517:
1516:
1514:
1513:
1498:Margin at risk
1494:Profit at risk
1487:
1485:Tracking error
1482:
1472:
1467:
1462:
1457:
1455:Risk-free rate
1452:
1447:
1442:
1437:
1432:
1427:
1422:
1417:
1412:
1407:
1402:
1397:
1392:
1386:
1384:
1378:
1377:
1374:
1373:
1371:
1370:
1365:
1360:
1355:
1353:Execution risk
1349:
1347:
1343:
1342:
1340:
1339:
1334:
1332:Political risk
1329:
1324:
1319:
1314:
1309:
1303:
1301:
1295:
1294:
1292:
1291:
1280:Liquidity risk
1277:
1272:
1270:Inflation risk
1267:
1262:
1260:Margining risk
1257:
1252:
1250:Valuation risk
1247:
1242:
1219:Commodity risk
1215:
1213:
1207:
1206:
1204:
1203:
1201:Securitization
1198:
1193:
1188:
1183:
1178:
1173:
1167:
1165:
1156:
1152:
1151:
1144:Financial risk
1140:
1139:
1132:
1125:
1117:
1109:
1108:
1058:
1014:
997:
978:
969:
960:
935:
918:Little, Mark.
910:
903:
885:
878:
860:
853:
834:
833:
831:
828:
822:
819:
818:
817:
809:
803:
797:
791:
785:
773:
770:
765:
764:
756:
755:
748:
747:
723:(for example,
694:
691:
634:
633:
631:
630:
623:
616:
608:
605:
604:
603:
602:
600:Stranded asset
594:
593:
587:
586:
580:
579:
578:
577:
572:
567:
565:Political risk
562:
557:
552:
544:
543:
537:
536:
535:
534:
532:Valuation risk
529:
527:Execution risk
524:
516:
515:
509:
508:
507:
506:
504:Margining risk
501:
496:
488:
487:
485:Liquidity risk
481:
480:
479:
478:
473:
468:
466:Commodity risk
463:
458:
453:
451:Inflation risk
448:
440:
439:
433:
432:
431:
430:
425:
423:Sovereign risk
420:
415:
407:
406:
400:
399:
391:
390:
388:Financial risk
384:
383:
375:
374:
372:
371:
364:
357:
349:
346:
345:
339:
338:
337:
336:
328:
327:
323:
322:
321:
320:
315:
313:Liquidity risk
310:
302:
301:
297:
296:
295:
294:
293:
292:
287:
282:
272:
271:
270:
265:
255:
254:
253:
248:
238:
237:
236:
231:
230:
229:
226:
216:
215:
214:
209:
199:
189:
188:
187:
182:
177:
175:Leverage ratio
172:
159:
158:
154:
153:
152:
151:
142:
133:
121:
120:
116:
115:
114:
113:
112:
111:
110:
109:
104:
99:
94:
84:
79:
69:
61:
60:
48:
47:
28:
26:
19:
9:
6:
4:
3:
2:
1825:
1814:
1813:Financial law
1811:
1809:
1806:
1804:
1801:
1799:
1796:
1795:
1793:
1778:
1775:
1773:
1770:
1768:
1765:
1764:
1761:
1755:
1752:
1750:
1749:Systemic risk
1747:
1745:
1742:
1740:
1737:
1735:
1732:
1730:
1727:
1725:
1722:
1720:
1717:
1715:
1712:
1710:
1707:
1705:
1702:
1700:
1697:
1695:
1692:
1690:
1687:
1685:
1682:
1680:
1677:
1675:
1672:
1670:
1667:
1665:
1662:
1660:
1657:
1655:
1652:
1648:
1645:
1643:
1640:
1638:
1635:
1633:
1630:
1628:
1625:
1623:
1620:
1618:
1615:
1613:
1610:
1608:
1605:
1603:
1600:
1599:
1598:
1595:
1593:
1590:
1588:
1585:
1583:
1580:
1578:
1575:
1573:
1570:
1568:
1565:
1563:
1560:
1558:
1555:
1553:
1550:
1548:
1547:Capital asset
1545:
1543:
1540:
1538:
1537:Asset pricing
1535:
1533:
1530:
1528:
1525:
1524:
1522:
1518:
1511:
1507:
1503:
1499:
1495:
1491:
1488:
1486:
1483:
1480:
1476:
1473:
1471:
1470:Sortino ratio
1468:
1466:
1463:
1461:
1458:
1456:
1453:
1451:
1448:
1446:
1443:
1441:
1438:
1436:
1433:
1431:
1428:
1426:
1423:
1421:
1418:
1416:
1413:
1411:
1408:
1406:
1403:
1401:
1398:
1396:
1393:
1391:
1388:
1387:
1385:
1383:
1379:
1369:
1366:
1364:
1363:Systemic risk
1361:
1359:
1356:
1354:
1351:
1350:
1348:
1344:
1338:
1335:
1333:
1330:
1328:
1325:
1323:
1320:
1318:
1315:
1313:
1312:Business risk
1310:
1308:
1305:
1304:
1302:
1300:
1296:
1289:
1285:
1281:
1278:
1276:
1273:
1271:
1268:
1266:
1263:
1261:
1258:
1256:
1253:
1251:
1248:
1246:
1243:
1240:
1236:
1232:
1228:
1224:
1220:
1217:
1216:
1214:
1212:
1208:
1202:
1199:
1197:
1194:
1192:
1189:
1187:
1184:
1182:
1179:
1177:
1174:
1172:
1169:
1168:
1166:
1164:
1160:
1157:
1153:
1149:
1145:
1138:
1133:
1131:
1126:
1124:
1119:
1118:
1115:
1104:
1100:
1096:
1092:
1088:
1084:
1080:
1076:
1072:
1071:
1062:
1054:
1041:
1033:
1029:
1025:
1018:
1007:
1001:
993:
989:
982:
973:
964:
950:
946:
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925:
921:
914:
906:
904:9783319285955
900:
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879:9781349352951
875:
871:
864:
856:
854:9781119989974
850:
846:
839:
835:
827:
815:
814:
810:
807:
804:
801:
798:
795:
794:Contract Risk
792:
789:
786:
783:
779:
776:
775:
769:
763:Tsui TC. 2013
762:
761:
760:
753:
752:
751:
745:
744:
743:
741:
735:
734:
730:
726:
722:
716:
712:
703:
702:
698:
690:
686:
682:
680:
676:
672:
667:
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660:
656:
652:
648:
644:
640:
629:
624:
622:
617:
615:
610:
609:
607:
606:
601:
598:
597:
596:
595:
592:
589:
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585:
582:
581:
576:
573:
571:
568:
566:
563:
561:
558:
556:
553:
551:
548:
547:
546:
545:
542:
541:Business risk
539:
538:
533:
530:
528:
525:
523:
520:
519:
518:
517:
514:
511:
510:
505:
502:
500:
497:
495:
492:
491:
490:
489:
486:
483:
482:
477:
476:Systemic risk
474:
472:
469:
467:
464:
462:
459:
457:
456:Currency risk
454:
452:
449:
447:
444:
443:
442:
441:
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