risk-assessment

Legal risk scoring applies a Severity x Likelihood matrix to classify contract risks into levels and calculate a standardized risk score. This generates structured risk register entries to support governance decisions and escalation guidance.

The best way to document legal risk assessments is using a standardized memo format that captures risk classification levels, calculated scores, and recommended actions. This ensures consistent governance documentation across policy changes and contracts.

Escalation to outside counsel is determined by risk classification levels generated from the Severity x Likelihood matrix score. The assessment provides clear escalation guidance based on the calculated risk magnitude and recommended actions for governance matters.

The risk matrix is applicable to contract reviews, policy changes, and governance matters. It systematically scores legal risks across these contexts to support risk classification, documentation, and escalation decisions wherever risk assessment is needed.

A risk register entry is created by running a risk assessment that scores identified legal risks using the matrix, then populating the standard register template with the resulting risk classifications, scores, and recommended governance actions.

The framework standardizes risk classification and scoring for documentation and escalation, but requires accurate input regarding the severity and likelihood of legal risks to generate reliable memo formats and governance guidance for outside counsel decisions.