Legal Risk Management and Corporate Security Policy Cover Image

Управљање правним ризицима као елемент корпоративне безбедносне политике
Legal Risk Management and Corporate Security Policy

Author(s): Mladen Milošević, Miroslav Mladenović
Subject(s): Security and defense
Published by: Институт за политичке студије
Keywords: Legal Risk Management; Corporate Security; Risk; Legal Risk; Security Policy

Summary/Abstract: Risk Management as an interdisciplinary field requires multidimensional approach and the engagement of different academic disciplines. The significance of Risk Management studies is rising since the end of the last century, along with technological development and corporate responsibility. However, the concept of risk has various definitions in the literature, international standards and business practice. One of the common concepts of risk determines it as relation between probability and the consequence, or level of possibility that an action or activity will lead to lead to a loss or to an undesired outcome (an action taken in spite of uncertainty with its consequence). The Legal Risk is a fresh concept that has not yet been unanimously determined and accepted in legal studies. Although legal science lacks relevant studies about Legal Risk, international associations and other entities are trying to define them and also to establish the principles of its management. The authors present and analyse theoretical approaches to this concept and also relevant international documents, such as Basel II and International Bar Association Discussion Paper. Also, legal risk are analysed by considering literature that covers different backgrounds – from legal risk in EU legal framework to standard corporate legal risk issues. The authors adopt two definitions of Legal Risk, based on its nature and the origin, and discuss that this definitions do not contradict each other and can well stand alongside, depending on the sort of Legal Risk as a complex phenomenon. The basic principles and rules of Legal Risk Management are recognised as a part of the Corporate Risk Management and Security Policy, where authors demonstrate the fact that reducing, transferring or otherwise controlling Legal Risk consequently result in the reducing of other corporate risks, especially in the security field. Corporate Security and Safety depend on adequate Legal Risk Management in great measure, and normative and administrative measures can be a powerful tool for improving the state of Corporate Security and Safety. The authors conclude the Legal Risk Management should be the focus of future empirical studies and state that its significance can be recognised in various fields.

  • Issue Year: 2017
  • Issue No: 3
  • Page Range: 289-304
  • Page Count: 16
  • Language: Serbian