In my new book, Showing the Value of the Legal Department, I set out a checklist to help in-house lawyers quickly analyze potential risks (risks being potentially both negative and positive, e.g., taking risks can lead to positive results). Here is a version of that checklist, and it’s a helpful filter when you look at things coming across your desk day in and day out:

  • Is this a risk that can create or destroy value?
  • Could this be a game-changer and how so?
  • Is this something a regulator might care about/criminal?
  • Could this make customers or vendors happy or upset/litigation?
  • If it becomes public or goes “badly,” will it damage our reputation? 
  • Is this covered by a specific law or regulations/does it comply? What’s the downside?
  • What will our competitors do? How should we respond?
  • Have others had problems or success with this before/lessons already learned? 
  • Could this hurt someone (e.g., physical, safety, environmental mishap, reputation)?
  • Is this an opportunity for the company and, if so, who needs to know?