How to prevent and control legal risks

The legal risk in Yang Wenbin is a commercial risk that may cause economic losses, not an isolated enterprise risk. Any kind of risk of a company will eventually bring legal risks. Because legal risks will affect the operation of enterprises, managing legal risks has become the responsibility of top managers. In General Electric Company, Jack Welch incorporated legal risk management into the performance appraisal of managers. This practice is generally accepted by most foreign companies and regarded as the best management practice. There are many sources of legal risks; It may be caused by improper management decisions and legal affairs, or by various management matters such as financial management, investment management and human resource management. Therefore, it is not only the responsibility of legal personnel to control the legal risks of the company, but also the management personnel, especially senior management personnel, must take the lead in managing these risks. 1. Improve the company's legal risk management system. The improvement of the company's legal risk management system requires the establishment of special management institutions, the design and implementation of special management processes, and the allocation of special management personnel. In the design of enterprise management process, the company should have institutionalized legal control links, including: legal risk assessment of the company's business decision, legality and risk prevention assessment of the company's system, audit and control of the company's contract, non-litigation and litigation handling of legal disputes, and reduction or recovery of losses. Scientific and effective design and reorganization of enterprise management processes, and legal control as an indispensable part of internal control. In addition to the legal affairs management department, we should also establish a general counsel system and a special management organization. Establishing the general counsel system is the need to improve modern company management, focusing on prevention in advance, control in the process and remedy afterwards, avoiding the arbitrariness of company decision-makers, earnestly safeguarding the legitimate rights and interests of investors and funded enterprises, controlling and reducing decision-making risks to the maximum extent, realizing the real sense of "three chiefs" and general counsel to participate in the company's major decisions, democratic decisions and scientific decisions, further improving the company's decision-making mechanism, establishing and improving the company's investment and financing, and major guarantees. 2. Employees at all levels of the company will encounter all kinds of legal risks, and they also have the responsibility to guard against them. As the core components of the company's employees, the company's decision-making and management need to raise the awareness of legal risk prevention and control, strengthen the study of basic economic legal knowledge and corresponding professional legal knowledge, and attach importance to the professional support of legal personnel. A defect in a management system and a loophole in a contract may bring millions or even tens of millions of property losses to the company. Therefore, it is necessary to strengthen the awareness of prevention and control of legal risks related to job behavior of employees at all levels. The prevention of legal risks in enterprises not only needs clear legal control links, but also needs the protection of legal risk awareness of middle and senior managers in enterprises; Especially when the company has no clear legal control link, it depends more on the legal risk awareness of senior and middle managers at all levels of the company. In practice, some managers will judge a company contract first, and if they think there is no legal risk, they will no longer pass the judgment of legal personnel; If you feel that there are legal risks, you will seek the judgment of legal personnel. As a result, some managers think that there is no legal risk judgment, which leads to legal risk, because unprofessional judgment and professional judgment have different depths of event analysis. The legal risk awareness of middle and senior managers in the company not only refers to their legal awareness, but also refers to their conscious management awareness of seeking support from various professional departments, especially the legal department. Therefore, the company must attach importance to the cultivation and improvement of the legal risk awareness of middle and senior managers, and actively guide and cultivate the legal awareness and management awareness of employees at all levels through management process control and comprehensive training plan for employees. 3. Improve the legal risk management system. Legal risk prevention and control should improve the management systems such as prevention in advance, control in the event, and remedy afterwards. 1. To prevent beforehand, we should first do a good job in legal risk assessment of major business decisions, and establish a risk prevention system for professional legal personnel or legal directors to participate in major decisions of the company; Establish and improve the company's contract management measures. The signing of major contracts requires professional legal personnel to participate in contract negotiation, credit investigation, contract drafting and review. 2. Process control is also an important part of legal risk prevention and control. For major business activities, business negotiations and contract performance, there must be legal participation and checks and balances, and a complete legal monitoring system for major business activities should be established. 3. Establishing and perfecting the management methods of litigation and arbitration cases is the last barrier to prevent and control legal risks and remedy afterwards. If handled well, the losses caused by legal risks can be avoided, reduced or recovered. 4, legal risk prevention and control should also establish the company's intellectual property management system. Intellectual property management includes the management of trademarks, patents, non-patented technologies, copyrights and commercial technical secrets. In the era of knowledge economy, an intellectual property with core competitiveness is closely related to the survival of enterprises. Therefore, the prevention and control of legal risks must not ignore the management of intellectual property rights. 5. Many legal risks of the company are caused by negligence, intention or quality problems of managers, and some legal risks may be avoided by professional and dedicated employees. Therefore, the company must pay attention to the prevention of legal risks, establish and improve the legal risk management of human resources to people, train, standardize and assess the middle and senior managers of the company, and evaluate the legal consequences of their management actions. 4. Strengthen the prospective study on the influence of legislative adjustment on the company. Legislative adjustment will have a great impact on the economic environment on which the company depends, and even determine the fate of the company. The premise that the company's economic behavior can be profitable normally is the legalization of economic behavior. Therefore, it is the economic law (including laws and regulations) that gives the company business space and determines whether a company can enter an investment field and to what extent. If we can follow up this legislative trend, it will provide a good reference for the company's investment and operation. For example, the state's strict laws and regulations on real estate management and macro-control of the real estate market mean that good brands and large companies will have better development opportunities, but they also have higher requirements for company management. If the management is not standardized, it will be subject to greater legal risks. 5. Legal disputes should be handled in a timely, optimized and comprehensive manner. Any business behavior of the company will be manifested as corresponding legal behavior. The company's employee employment, foreign investment, product sales, material procurement, etc. , will bring legal consequences. As an economic organization, companies, like natural persons, all live in a society woven by law. The management behavior of a company is essentially a profit-making behavior, but it is formally realized through legal behavior. In the operation of the company, various legal disputes will inevitably occur, some due to their own reasons, some due to other people's reasons, and some due to force majeure factors. For potential legal disputes, the company's legal department should evaluate the possibility of its manifestations and its impact on the company, and make plans to resolve legal risks in advance. For the legal disputes that have arisen, the company should evaluate their legal risks and decide to solve them by means of non-litigation or litigation, concession or non-concession. The evaluation of legal dispute resolution should be based on the causes of disputes, one's own fault, the other's fault, the size of risks, initiative, social impact and other factors. To solve legal disputes, we must get the support of legal professionals, make detailed plans and steps, and prepare relevant legal documents. If legal disputes are not resolved in time or in the wrong way, it will expand unnecessary losses for the company. Therefore, the understanding of legal disputes should be comprehensive, the plan should be optimized and handled in time. Legal risk is not terrible, it is just an indispensable partner for the company to survive. As long as you master the basic rules, you can dance with legal risks, prevent and control the losses caused by risks, and make legal risks evaluated and prevented. Advocating legal risk awareness is not to restrain employees and companies, but to promote employees and companies to operate within the controllable risk range and enhance the company's profitability and anti-risk ability.