Risk Process

This video outlines the steps to spot and rate legal risks. We will also cover risk treatment or risk mitigation.

Risk management must confront three significant issues. Critical versus chronic issues, uncertainty, and screening.

A risk assessment goes through three phases - identification, analysis, and evaluation.

To identify risks is to look for, imagine, and dig up potential problems and then put them on a list.

The risk criteria guide our recommendations about what to do with a given risk or collection of risks. We define what risk is a acceptable to the organization.

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?

This video covers how to measure the likelihood and consequences of legal risk as part of your legal risk analysis.

Context matters. It is tempting to identify risks that, while real, are not relevant to your context.

Key concepts and takeaways about legal risk assessment, including probability (likelihood) and consequences.

Now that we have identified and assessed legal risks, it is time to evaluate our options. Should the risk be ignored or treated?

Effective risk assessments require collaboration among domain experts and those with access to necessary information.

Get a quick review of the legal risk management process with this short, free tutorial.

When you decide to act to deal with a risk, you are “treating” that risk, meaning that you are modifying it or changing the likelihood or consequences.