Growing businesses need to mitigate risk
Big businesses generally have major assets, which makes them targets for lawsuits. With so much to lose, these companies need to ensure they take the necessary risk management steps to mitigate this high professional liability risk.
For instance, large-scale law firms are often pulled into court due to various kinds of lawsuits filed against them, including:
- Missed deadlines - When taking on a client, law firms are generally working on a deadline for a case. If that is ever missed, law firms could find themselves on the wrong end of a significant malpractice lawsuit, especially if the client's case involved a large amount of money. To protect the firm's assets, it is important that they never miss a deadline. If they do, the firm should have a good enough reason so they won't get sued.
- Conflicts of interest - Another common cause of malpractice for big law firms is a conflict of interest. This issue can arise for numerous reasons, one of the main being joint representation. Representing two people in the same case can be a recipe for disaster and can put the firm's assets at risk.
Aside from law firms, other types of big businesses are facing new risks that could be putting their assets in the line of fire as well.
- Cyber security - With the emergence of new technologies, many companies have moved their infrastructure to the web. While this can make life easier for a business and its employees, it also puts information at risk of a cyberattack. This can be especially dangerous for companies that handle sensitive information for its clients, as if this data is compromised, a business could find itself the target of a major malpractice lawsuit.
With the potential for numerous liability risks to arise on an everyday basis, top-decision makers at large companies need to be fully aware of risk management best practices. For example, to prevent cyberattacks, it could be a good idea to hire an outside consultant to come in and inspect the company's IT and cyber security. Having large assets can make any business the target of lawsuits, and if the necessary steps aren't taken to prevent this from happening, CEOs and others company heads could find themselves stuck in court more often than they like.