Legal Issues Related And Risk Mitigation Strategies

• Due to the long term contracts from the government it is impacting the company’s cash flow in a negative trend.

The safety aspect for risk management will evaluate the potential for human loss of life and or injury. The potential for major incident or accident, such as fire, explosion, or spill, including environmental damage. The necessity for security within the company is a highly need aspect of safety that can lead to risk. The revenues aspect for risk management will evaluate the loss of customer base, recovering of capital loss and recognizing uncoverable capital loss, and loss of opportunity in marketing of the product. The necessity for revenue risk management is key. The costs aspect for risk management will evaluate the costs that were incurred due to preventable problems. Also, costs due to increased warehouse space, vendor changes, and discount changes. A significant risk in cost for this company is the cost of legal defense. The legal aspect for risk management will evaluate regulatory compliance failures and actions that could result

dangers would become much larger and much more likely to happen. There are also many

The challenge they face is that stakeholders may not agree with borderline ethical/legal conduct and not invest in the company. This can lead to image loss and financial downfalls and undermine the entire company.

There are several issues that need to be addressed as it relates to the situation. These issues include those from a policy standpoint, as well as those from a legal standpoint. The following are the issues this author saw fitting to tackle:

this case could be an tricky in the court, because in the contract they only

leverage increases, interest rate on the total debt will increase. The Company is considering the

At the end all the risk are finance related, because the liability’s cost money and this will have an effect in the company’s earnings, so what is important is not only to try to avoid such events but also to be prepare in case they happen and have a plan, is like the saying “Hope for the best but be prepare for the worst”.

Within business, there will always be operational risks to consider. "Operating risk is the basic

4. Identify the initial categories of risk (RBS Level 1 and 2) that you see as being present in the case study using the Example Risk Checklist (Figure A-2, Hillson & Simon text).

It has been a serious process for many organizations to raise capital which automatically has business and financial risks involved.

Risk in relation to functions- HR management, economic operations, OHS, supply chain, local governance and compliance issues.

pay for the interest) and also effect the asset-liability ratio, making the company owe more than

Short Term – Tactical: The best short-term strategy would be to maintain the status- quo. No short term risk.

* Operational Risk: It includes all the major and minor processes taking place in the company. It included: trained Human Resources, strong IT Infrastructure, management and repair of equipments. The risk involved has low