---
name: Legal Risk Assessment
description: Quantify and prioritize legal exposure.
---
# Legal Risk Assessment

Not all legal risks are worth mitigating — some have low probability and low impact and the mitigation costs more than the risk. The skill is sorting.

## Method
- **Inventory exposures.** From contracts, IP, employment, regulatory, litigation, data.
- **Estimate likelihood × impact.** Impact in dollars (damages, fines, business disruption) and time.
- **Rank.** High-likelihood + high-impact on top. These get mitigated first.
- **Mitigate by level.**
  - Eliminate (change the practice).
  - Transfer (insurance, indemnity).
  - Reduce (process, training).
  - Accept (with eyes open, documented).

## Avoid
Treating all risks as equal. A 1% chance of a $1M fine and a 90% chance of a $500 dispute are not the same priority.