| If you consider all the ways in which companies have | | | | response to this risk event, many corporations have |
| to run a business, it is no wonder legal support is so | | | | began utilizing the services of internet data centers, |
| critical. Markets today are highly competitive. The | | | | which house the brain of the company in a secured, |
| internet has made global competition a reality that | | | | temperature controlled, clean, and monitored |
| years ago we could not have even dreamed possible. | | | | environment. |
| With the increased opportunity also comes increased | | | | Financial risks are always a concern for companies, |
| risk. Businesses must have the right information, at | | | | and can impact all facets of the organization - |
| the right time to make strategic, operational, and | | | | operations, insurance, liabilities, etc. In addition to the |
| tactical decisions about their business. | | | | traditional concerns of collecting, managing and |
| Although there are a number of areas within every | | | | presenting financial data, companies are also exposed |
| company that need special attention, two of the | | | | to financial risks in business development. A business |
| most critical are finance and legal. Without surprise, | | | | cannot grow without undertaking some amount of |
| these areas are also the source of potential business | | | | risk. For this reason risk cannot be managed in a silo |
| risk. Risk is a cost of doing business but for each risk | | | | by Legal, or Risk Management. An effective risk |
| event, a business will need to decide whether they | | | | management plan will align with the overall strategic |
| will avoid it, mitigate it or transfer the risk. As it | | | | objectives of the business. Your inside and outside |
| pertains to legal issues some risk issues can be | | | | counsel must be partners in this process. While |
| handled within the company, while others will require | | | | counsel will seek to institute the necessary |
| the support of an attorney. In order to reduce or | | | | protections against risk, they must also understand |
| avoid risk, your attorney must not only be | | | | critical business objectives and help the organization |
| competent in their field but have a firm understanding | | | | to realize them. |
| of your strategic business objectives. | | | | Each company will have a risk profile based on their |
| The role of risk in business received even greater | | | | business goals and tolerance for risk. A company's |
| attention with the events which led to the creation | | | | risk aversion or acceptance will vary depending on a |
| of the Sarbanes-Oxley Act. The federal regulations | | | | number of factors, including industry, size, |
| around corporate governance coupled with the | | | | competitive landscape and level of regulatory |
| increase of white-collar crime such as identity theft, | | | | oversight. In example a financial institution may be |
| computer hacking, and embezzlement have made | | | | much more risk averse than a printing company. For |
| companies take risk management very seriously. | | | | global organizations, the risks may also vary by |
| Corporate compliance issues can become | | | | location. |
| overwhelming and complex, which is why a reputable | | | | Risk management truly requires a partnership |
| law firm is important. A law firm invested in your | | | | approach. Legal, Sales, Operation and The Executive |
| success can guide you through processes so you are | | | | Team must communicate and understand the critical |
| able to efficiently assess and address risk issues. | | | | business objectives and work together to make |
| As the amount of information we produce increases, | | | | them happen. The legal team should understand not |
| data management and security also becomes more | | | | only how to identify risks in practices, operations, |
| important. Your law firm can assist you with | | | | processes, technologies, and techniques but also how |
| becoming better organized around data security | | | | the risk fits with the overall business plan. Risks are |
| issues, and hence implementing risk reduction | | | | inevitable, but with teamwork and skillful execution, |
| measures. Data not only needs to be organized but | | | | you can successfully navigate the often choppy |
| securely stored with appropriate access controls. In | | | | waters of doing business. |