Overview

Legal Risk Management

Legal risk management refers to the systematic process for handling risks within a company. “Good corporate governance” as part of the internal control system (ICS) includes risk management that also covers all legal risks. “Legal risks” are understood here to be those risks that originate directly in the legal environment of the enterprise. They can result, for instance, from infringements of export provisions, antitrust or data protection law, the Federal Law on Unfair Competition, anti-corruption provisions or compulsory labor law. On top of this, imprecise contractual provisions not aligned with the project (“copy-paste”!) and missing or insufficient liability restrictions in contracts as well as lack of coordination between subcontractor contracts, customer contracts or safeguarding bank and insurance products (operational risks) can have far-reaching consequences for the enterprise.

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