As a business owner, there are so many different matters and issues that you need to contend with. One mistake could see your business facing issues in terms of your reputation and your financial standing. Of course, the greatest risks are those of a legal nature. The last thing you need is for your company to be engaged in a court battle. With that being said, read on to discover more about some of the most common legal risks that can impact your business.
Regulatory – Let’s begin with regulatory risks, which involve having your company’s operation license taken away by a regulator. You could also have conditions applied that will have an adverse impact on your enterprise’s economic value. So, under what circumstances can something like this happen? Well, agencies, commissions and/or governments can enforce such regulations if you are in breach of any laws, standards, policies or specifications that are in place. Rules and regulations change all of the time, so make sure you keep up to date with the latest versions.
Disputes – One of the most common types of legal risk is a dispute. This is a term that is used to describe when a legal claim is made against your business. There are so many different types of corporate legal claims, including those involving product liability, accidents in the workplace, and employee misconduct. When a claim is made against your company, have qualified professionals on your side like Slater Heelis solicitors is of paramount importance. After all, if the claim goes badly for you, you could end up with endless amounts of bad press and a reputation that is in tatters.
Contracts – Legal risks can also occur with regards to contracts. Contract risks occur when there is the chance that a financial loss could be endured either because you have failed to adequately manage the obligations or benefits of the contract, or because the buyer has reneged on the contract. The contract management process is pivotal here so that you can have a complete understanding of your exposure to contract risks. Poor contract processes are often to blame, for example, the inability to close a contract on time, non-compliant terms, and manual errors.
Assets – Last but not least, legal risks your business may face include asset risks. This relates to all of your tangible assets, for example, buildings, as well as intangible assets, for instance, intellectual property and human capital. You need to take steps to protect all of these.
Hopefully, you now have a better understanding regarding some of the most common legal risks that business owners can face today. It is important to be aware of these risks so that you can put the right methods and processes in place for dealing with them as effectively as possible. If you follow the advice that has been provided above, you can protect your business both now and in the future.