PowerPoint Presentation
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How to Measure & Manage LegalRisk
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Mark LittlePresident & CEO
mark.little@contractanalyst.comwww.ContractAnalyst.com855-517-2193Copyright
Contract Analyst, 2013 All rights reserved
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RiskDefinitionCopyright Contract Analyst, 2013 All rights
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3RiskR = p * LGECopyright Contract Analyst, 2013 All rights
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4Riskrisk is the likelihood (probability) of consequences (loss
given event)Copyright Contract Analyst, 2013 All rights
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5Riskeffect of uncertainty on objectives- ISO 31000Copyright
Contract Analyst, 2013 All rights reserved
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RiskLegalCopyright Contract Analyst, 2013 All rights
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7Legalstructuralregulatorycontractuallitigation
Copyright Contract Analyst, 2013 All rights reserved
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8StructuralFundamental industry normScope is generalAlters
competitive landscape Copyright Contract Analyst, 2013 All rights
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9RegulatoryNew or modified regulationsScope is general or
specificCivil, criminal, directiveCopyright Contract Analyst, 2013
All rights reserved
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10LitigationLawsuit based on conductScope is specificCivil
penalty; equitable relief Copyright Contract Analyst, 2013 All
rights reserved
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11ContractualBreach, not enforceable, Scope is specificFinancial
performanceCopyright Contract Analyst, 2013 All rights reserved
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RiskToleranceCopyright Contract Analyst, 2013 All rights
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Company A$(152.78)Copyright Contract Analyst, 2013 All rights
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Company B$(211.68)Copyright Contract Analyst, 2013 All rights
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Company C$(756.08)Copyright Contract Analyst, 2013 All rights
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16Best?context matterscapacity to absorb riskcost of risk
management Copyright Contract Analyst, 2013 All rights reserved
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RiskAssessmentCopyright Contract Analyst, 2013 All rights
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RiskIdentificationCopyright Contract Analyst, 2013 All rights
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RiskAnalysisCopyright Contract Analyst, 2013 All rights
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RiskEvaluationCopyright Contract Analyst, 2013 All rights
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29Probability%Very likelyLikelyPossibleUnlikelyVery
unlikelyorCopyright Contract Analyst, 2013 All rights reserved
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30Consequences$CriticalMajorModerateMinorInsignificantorCopyright
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31Ratingv.RankingCopyright Contract Analyst, 2013 All rights
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RiskTreatmentCopyright Contract Analyst, 2013 All rights
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33Necessity?Priority?Options?Decision?Copyright Contract
Analyst, 2013 All rights reserved
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RiskContextCopyright Contract Analyst, 2013 All rights
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35Strategic Plan4% growth in sales4% decline in expenses
Copyright Contract Analyst, 2013 All rights reserved
36Expense Risk
Random 0 - 5% increase in expensesCopyright Contract Analyst,
2013 All rights reserved
37Revenue Risk
Random 0 - 5% lost revenueCopyright Contract Analyst, 2013 All
rights reserved
38Valuation Risk
Copyright Contract Analyst, 2013 All rights reserved
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ReadyCopyright Contract Analyst, 2013 All rights reserved
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Mark LittlePresident & CEO
mark.little@contractanalyst.comwww.ContractAnalyst.com855-517-2193Copyright
Contract Analyst, 2013 All rights reserved
