In the modern world, litigation is everywhere as everybody needs someone to blame for any mishaps that happen to them through the journey of life. Whether you are walking down the street and trip over the pavement, or get hit by a car while crossing the road, there is negligence that puts you at legal risk and potentially someone else is responsible for the consequences that you suffer.
It is not only in our personal lives that we need to be conscious of risk but also in our professional lives. Businesses can suffer a whole array of different legal risks that can have devastating consequences if not handled in the right manner. Here we are going to take a look at the different ways your business could be at legal risk.
Every business throughout the world will enter into contracts with third parties, it is an unavoidable part of doing business, however, contracts are actually in place to protect you against non-fulfillment. It is for that very reason that you need to be aware of the risk in case you default. Defaulting can have very serious consequences as the 3rd party will not only try to claim for the non-performance of the contract, but they will also try and claim for business interruption, loss of revenue, and the cost of seeking alternative goods. So, the cost of not performing a contract can far outweigh the benefits that would have been accrued, so before you think of defaulting make sure you know what the potential outcome might be.
If your business is involved with manufacturing or even if it has a sales premises, then you need to be aware of the risk of personal injury to not only your staff but also to members of the public. Professionals from KerleySchaffer.com advise that all businesses should have public liability insurance to protect themselves from any claims from customers should they suffer an injury, and similarly you should have a policy in place that protects your staff. The consequences of not having protection can be extremely high if someone sufferers a serious injury, compensation will be awarded and this can sometimes be so high that it could put your whole business in jeopardy, so do the sensible thing and make sure you are fully insured.
In every country in the world, there are rules regarding how to conduct business and if you do not comply with these rules and regulations you can be fined, or at worst can have your business closed down. This could be for something as simple as not have the required food hygiene levels in a restaurant or it could be for something like not filing your annual return and company accounts on time which can attract a fine that is a percentage of turnover. Many businesses are run on small margins so being hit with compliance fines could risk your whole operation, so make sure you are well versed with the legal requirements and that you comply with them.
Fraud is something that happens all over the world, but it also something unexpected because the perpetrators of fraud try to do it without anybody noticing. The only way to really be on top of this type of risk from the start is to have full transparency over your operations that makes it impossible for anyone to try and conduct fraudulent activities. Transparency can help you prevent getting FBI subpoenas.
In large companies, it often pays to have a dedicated team that will investigate random transactions to ensure that they are being carried out above board. It is important to keep an eye on your purchasing and sales departments as these are the areas where it is easiest to carry out dishonest activities.
Take a look online and you’ll see a lot of websites asking for personal details before you can create an account. These days, data is king as it is extremely valuable and can very easily be monetized, and then there are also the problems that can happen when our personal details are released to the wider world by criminals. The consequences can be devastating for firms because they are duty-bound to keep all customer data private and confidential, and courts have historically handed down huge fines to those who do not keep this data safe. So, don’t run the risk, and make make sure you have a hacker-proof firewall.
As we have learned there are many ways how your business can be at legal risk, and all of them can have an adverse impact on your business. Make sure you are protected against accidents to your workforce and the wider public and make sure that you comply with all business regulations in your state. Fulfill all your business contracts, and make fraud as hard as possible by increasing transparency in your daily operations. If you follow these tips your business will be as free of legal risks as possible.