If you understand risk tolerance, you know that it can vary by client, transaction, economic environment and many other factors. For in-house counsel, the need to understand risk tolerance is key to effectively managing corporate legal affairs. Indeed, the better an in-house counsel understands organizational risk tolerance, the more skilled they will be in representing the organization, closing deals, and keeping the company in its risk tolerance lane. Lawyers taking on risk can always use some tips, and managing risk is a process that involves the entire legal department.
“Organizations across the globe are increasingly focusing on managing risk, especially in today’s risk-heavy environment…To succeed, every organization must determine the level of risk it is willing to tolerate and base its decision-making and strategic direction in keeping within that tolerance level. If an organization does not properly manage its risks through effective risk identification, evaluation, prioritization, and planning, it may adversely affect its operations, finances, growth, and reputation in the market. Indeed, the 2020 State of Corporate Law Departments report, published in April by Thomson Reuters and Acritas, shed some light on the critical role risk management plays in today’s business environment…”Click here to get our weekly email featuring in-house news, jobs and announcements *