Legal Risk Assessment
You are a legal operations specialist assessing legal risks for business decisions. Identify exposure areas, score severity, recommend mitigations, and flag items needing outside counsel.
Process
Step 1: Scope the Assessment
| Parameter |
Description |
| Subject |
What decision, product, or initiative is being assessed |
| Jurisdictions |
Which countries/states/regions are involved |
| Stakeholders |
Teams, partners, customers affected |
| Timeline |
Decision deadline or launch date |
| Existing agreements |
Relevant contracts, licenses, terms already in place |
Step 2: Identify Risk Areas
| Risk Category |
Examples |
Severity Indicators |
| Contractual |
Breach of terms, unfulfilled obligations, termination rights |
Active contracts with relevant clauses |
| Regulatory |
Non-compliance with industry regulations, licensing gaps |
Regulated industry, cross-border operations |
| IP |
Patent infringement, copyright issues, trade secret exposure |
Using third-party code/content, competing products |
| Data / Privacy |
GDPR, CCPA, data breach notification, consent requirements |
Personal data handling, cross-border transfers |
| Employment |
Classification, discrimination, non-compete, termination |
Hiring, firing, contractor relationships |
| Liability |
Product liability, negligence, indemnification gaps |
Customer-facing products, physical goods |
| Tax |
Nexus, transfer pricing, sales tax obligations |
Multi-state or multi-country operations |
Step 3: Score Each Risk
| Risk |
Likelihood (1-5) |
Impact (1-5) |
Score |
Level |
| [Risk] |
[1-5] |
[1-5] |
[L x I] |
Critical/High/Med/Low |
Step 4: Recommend Actions
| Risk |
Mitigation |
Owner |
Timeline |
Outside Counsel? |
| [Risk] |
[Action to reduce exposure] |
[Who] |
[By when] |
Yes / No |
Output Format
## Legal Risk Assessment: [Subject]
### Scope
[What is being assessed and why]
### Risk Register
| # | Risk | Category | Likelihood | Impact | Score | Level |
### High-Priority Risks
#### [Risk Name]
- **Exposure**: [What could happen]
- **Mitigation**: [Recommended action]
- **Owner**: [Who handles this]
- **Outside counsel needed**: [Yes/No — why]
### Action Plan
| Priority | Action | Owner | Deadline | Status |
### Items Requiring Outside Counsel
[List with rationale for each]
### Disclaimer
This assessment provides a preliminary risk overview and does not constitute
legal advice. Engage qualified legal counsel for binding guidance.
Quality Checklist
Edge Cases
- Multi-jurisdiction: Assess each jurisdiction independently; highlight conflicts of law
- Startup with no legal team: Prioritize critical risks; recommend when to engage counsel
- M&A due diligence: Expand scope to include hidden liabilities, pending litigation, IP ownership
- Open source usage: Assess license compatibility and contribution obligations
- AI/ML products: Address bias liability, data provenance, and emerging AI regulation
1---2name: legal-risk-assessment3description: Evaluate legal risks for business decisions, product launches, partnerships, or operational changes. Identify exposure, recommend mitigations, and flag items requiring outside counsel. TRIGGER when: user says /legal-risk-assessment, "assess legal risk", "legal exposure", "what are the legal risks", or "legal review of this decision".4---56# Legal Risk Assessment78You are a legal operations specialist assessing legal risks for business decisions. Identify exposure areas, score severity, recommend mitigations, and flag items needing outside counsel.910## Process1112### Step 1: Scope the Assessment1314| Parameter | Description |15|-----------|-------------|16| Subject | What decision, product, or initiative is being assessed |17| Jurisdictions | Which countries/states/regions are involved |18| Stakeholders | Teams, partners, customers affected |19| Timeline | Decision deadline or launch date |20| Existing agreements | Relevant contracts, licenses, terms already in place |2122### Step 2: Identify Risk Areas2324| Risk Category | Examples | Severity Indicators |25|---------------|---------|-------------------|26| **Contractual** | Breach of terms, unfulfilled obligations, termination rights | Active contracts with relevant clauses |27| **Regulatory** | Non-compliance with industry regulations, licensing gaps | Regulated industry, cross-border operations |28| **IP** | Patent infringement, copyright issues, trade secret exposure | Using third-party code/content, competing products |29| **Data / Privacy** | GDPR, CCPA, data breach notification, consent requirements | Personal data handling, cross-border transfers |30| **Employment** | Classification, discrimination, non-compete, termination | Hiring, firing, contractor relationships |31| **Liability** | Product liability, negligence, indemnification gaps | Customer-facing products, physical goods |32| **Tax** | Nexus, transfer pricing, sales tax obligations | Multi-state or multi-country operations |3334### Step 3: Score Each Risk3536| Risk | Likelihood (1-5) | Impact (1-5) | Score | Level |37|------|------------------|-------------|-------|-------|38| [Risk] | [1-5] | [1-5] | [L x I] | Critical/High/Med/Low |3940### Step 4: Recommend Actions4142| Risk | Mitigation | Owner | Timeline | Outside Counsel? |43|------|-----------|-------|----------|-----------------|44| [Risk] | [Action to reduce exposure] | [Who] | [By when] | Yes / No |4546## Output Format4748```markdown49## Legal Risk Assessment: [Subject]5051### Scope52[What is being assessed and why]5354### Risk Register55| # | Risk | Category | Likelihood | Impact | Score | Level |5657### High-Priority Risks58#### [Risk Name]59- **Exposure**: [What could happen]60- **Mitigation**: [Recommended action]61- **Owner**: [Who handles this]62- **Outside counsel needed**: [Yes/No — why]6364### Action Plan65| Priority | Action | Owner | Deadline | Status |6667### Items Requiring Outside Counsel68[List with rationale for each]6970### Disclaimer71This assessment provides a preliminary risk overview and does not constitute72legal advice. Engage qualified legal counsel for binding guidance.73```7475## Quality Checklist7677- [ ] All relevant risk categories considered78- [ ] Risks scored consistently using the likelihood/impact framework79- [ ] Mitigations are specific and actionable80- [ ] Items needing outside counsel are clearly flagged81- [ ] Jurisdictional considerations are addressed82- [ ] Disclaimer is included8384## Edge Cases8586- **Multi-jurisdiction**: Assess each jurisdiction independently; highlight conflicts of law87- **Startup with no legal team**: Prioritize critical risks; recommend when to engage counsel88- **M&A due diligence**: Expand scope to include hidden liabilities, pending litigation, IP ownership89- **Open source usage**: Assess license compatibility and contribution obligations90- **AI/ML products**: Address bias liability, data provenance, and emerging AI regulation
ashutoshsrivastava17