saolalab Risk Assessment
This skill provides frameworks for identifying, assessing, and managing legal risks.
Risk Register Template
# Legal Risk Register
| ID | Risk Description | Category | Likelihood | Impact | Risk Score | Status | Owner | Mitigation Strategy | Next Review |
|----|------------------|----------|------------|--------|------------|--------|-------|---------------------|-------------|
| LR-001 | [Risk description] | [Contract/IP/Compliance/etc.] | [Low/Med/High] | [Low/Med/High] | [1-9] | [Open/Mitigated/Closed] | [Name] | [Strategy] | [Date] |
Risk Categories
- Contract: Contract-related risks (unfavorable terms, breach risk)
- IP: Intellectual property risks (infringement, misappropriation)
- Compliance: Regulatory compliance risks (GDPR, employment law)
- Litigation: Dispute and litigation risks
- Employment: Employment law risks (wrongful termination, discrimination)
- Data: Data protection and privacy risks
- Corporate: Corporate governance risks
Risk Scoring Matrix
Likelihood:
- Low (1): Unlikely to occur (< 10% probability)
- Medium (2): Possible to occur (10-50% probability)
- High (3): Likely to occur (> 50% probability)
Impact:
- Low (1): Minimal impact (minor financial loss, no operational impact)
- Medium (2): Moderate impact (significant financial loss, some operational impact)
- High (3): Severe impact (major financial loss, significant operational impact, reputational damage)
Risk Score = Likelihood × Impact
- 1-2: Low Risk — Accept or monitor
- 3-4: Medium Risk — Mitigate or transfer
- 6-9: High Risk — Mitigate immediately or avoid
Risk Response Strategies
- Accept: Risk is acceptable, no action needed
- Mitigate: Implement controls to reduce likelihood or impact
- Transfer: Use insurance, indemnification, or contracts to transfer risk
- Avoid: Eliminate the risk by changing approach or declining opportunity
IP Protection Checklist
Patents
- Invention Disclosure: Document inventions promptly
- Prior Art Search: Conduct search before filing
- Patentability Assessment: Evaluate novelty, non-obviousness, utility
- Filing Strategy: Determine filing jurisdictions and timing
- Patent Applications: File provisional or non-provisional applications
- Maintenance: Pay maintenance fees to keep patents in force
- Infringement Monitoring: Monitor for potential infringement
- Freedom to Operate: Assess FTO before product launch
Trademarks
- Trademark Search: Conduct clearance search before use
- Registration: File trademark applications in key jurisdictions
- Use Requirements: Maintain proper use to avoid abandonment
- Renewal: File renewal applications before expiration
- Monitoring: Monitor for unauthorized use or infringement
- Enforcement: Take action against infringers when necessary
Copyrights
- Copyright Notice: Include copyright notices on works
- Registration: Register copyrights for key works (optional but recommended)
- Ownership: Ensure proper assignment from creators
- License Management: Track licenses granted and received
- Infringement Monitoring: Monitor for unauthorized use
Trade Secrets
- Identification: Identify information that qualifies as trade secrets
- Documentation: Document trade secret policies and procedures
- Access Controls: Limit access to trade secret information
- Confidentiality Agreements: Require NDAs for employees and third parties
- Physical Security: Secure physical storage of trade secrets
- Digital Security: Encrypt and secure digital trade secrets
- Employee Training: Train employees on trade secret protection
- Exit Procedures: Secure return of trade secrets upon employee departure
Open Source Compliance
- License Inventory: Identify all open source components used
- License Compatibility: Ensure license compatibility
- Attribution Requirements: Comply with attribution requirements
- Source Code Disclosure: Understand when source code must be disclosed
- Compliance Program: Implement open source compliance program
- Audit: Regular audits of open source usage
Litigation Hold Procedure
When litigation is reasonably anticipated, implement a litigation hold:
1. Identify Scope
- Identify relevant time period
- Identify relevant custodians (employees with relevant information)
- Identify relevant data sources (email, documents, systems)
2. Issue Hold Notice
- Draft litigation hold notice
- Distribute to all relevant custodians
- Obtain acknowledgment of receipt
- Provide instructions on preservation
3. Preserve Evidence
- Suspend automatic deletion policies
- Preserve relevant documents and data
- Preserve relevant systems and backups
- Document preservation actions
4. Monitor Compliance
- Regular follow-up with custodians
- Verify preservation measures
- Update hold as scope changes
5. Document Process
- Document all hold procedures
- Maintain records of notices sent
- Track compliance
Insurance Coverage Review Template
# Insurance Coverage Review
**Review Date**: [Date]
**Reviewer**: [Name]
**Policy Period**: [Start Date] to [End Date]
## Policies Reviewed
### General Liability
- **Carrier**: [Insurance Company]
- **Policy Number**: [Number]
- **Coverage Limits**: [Amount]
- **Deductible**: [Amount]
- **Expiration**: [Date]
- [ ] Coverage adequate for operations
- [ ] Renewal needed: [Date]
### Professional Liability / E&O
- **Carrier**: [Insurance Company]
- **Policy Number**: [Number]
- **Coverage Limits**: [Amount]
- **Deductible**: [Amount]
- **Expiration**: [Date]
- [ ] Coverage adequate for services provided
- [ ] Claims-made vs. occurrence policy understood
- [ ] Tail coverage considered if claims-made
- [ ] Renewal needed: [Date]
### Cyber Liability
- **Carrier**: [Insurance Company]
- **Policy Number**: [Number]
- **Coverage Limits**: [Amount]
- **Deductible**: [Amount]
- **Expiration**: [Date]
- [ ] Coverage includes data breach response
- [ ] Coverage includes business interruption
- [ ] Coverage adequate for data exposure
- [ ] Renewal needed: [Date]
### Directors & Officers (D&O)
- **Carrier**: [Insurance Company]
- **Policy Number**: [Number]
- **Coverage Limits**: [Amount]
- **Deductible**: [Amount]
- **Expiration**: [Date]
- [ ] Coverage adequate for board size and risk
- [ ] Side A/B/C coverage understood
- [ ] Renewal needed: [Date]
### Employment Practices Liability (EPLI)
- **Carrier**: [Insurance Company]
- **Policy Number**: [Number]
- **Coverage Limits**: [Amount]
- **Deductible**: [Amount]
- **Expiration**: [Date]
- [ ] Coverage includes discrimination, harassment, wrongful termination
- [ ] Coverage adequate for employee count
- [ ] Renewal needed: [Date]
## Coverage Gaps Identified
- [Gap 1]
- [Gap 2]
## Recommendations
- [Recommendation 1]
- [Recommendation 2]
## Action Items
- [ ] [Action 1] — Owner: [Name] — Due: [Date]
- [ ] [Action 2] — Owner: [Name] — Due: [Date]
## Next Review
- Scheduled: [Date]
Risk Assessment Workflow
- Identify Risks: Brainstorm potential legal risks across all areas
- Categorize: Assign risk to appropriate category
- Assess: Score likelihood and impact
- Prioritize: Focus on high-risk items first
- Respond: Choose appropriate response strategy
- Document: Record in risk register
- Monitor: Regularly review and update risk register
- Report: Communicate high risks to leadership
Risk Review Schedule
- Daily: Monitor for new risks, review urgent matters
- Weekly: Review risk register, update status
- Monthly: Comprehensive risk review, update scores
- Quarterly: Risk register audit, strategy review
- Annually: Comprehensive risk assessment, insurance review