Legal Aspects of Risk Assessment
Mark Little advocates for a systematic approach for an organization to minimize its legal risks, in the hope of minimizing lawsuits and regulatory penalties, as well as improving the organization's responses.
He suggests six steps:
- Use a framework
- ISO 31000 is a framework that is simple, scalable, adaptable, and practical
- Obtain organizational commitment
- scope, types of risk tracked, audience for the risk reporting, and budget
- Identify legal risks
- sources; potential versus actual risk; and create a risk ledger
- Analyze legal risk
- assess risk controls and gauge their effectiveness
- Evaluate legal risk
- prioritize the response to the risk: avoid, increase, remove, change, or share
- Communicate and advise
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