AKA the chapter that’s not in the 4th edition (but the material probably is)

Steps in preventative law (essentially an audit):

• Risk identification
  • Identifying possible sources of legal danger
• Risk assessment
  • Determining relative probability of resulting legal danger resulting from inaction
    • Use previous history
    • Use statistics and trade journal case studies
• Risk evaluation
  • Determine whether retaining this risk is in line with the mission of the organization (i.e. whether it’s worth it to keep the risk in place)
• Development of preventative law plan
  • Four possible options:
    • Risk elimination
      • Go away from the service that is causing the legal danger
      • Only done if the service is peripheral to the mission of the org
    • Risk retention
      • Live with the risk and eat the loss if it happens
    • Risk transfer
      • Insurance or other way to have a third party bear the legal risk
    • Risk control
      • Mitigate the risk with possible solutions that lower the risk without removing the service
• Implementation of the preventative law plan
  • Be sure the entire org understands these possible legal risks and why the steps proscribed to mitigate those risks are important
    • Use effective policies & procedures
    • Use contract law to your advantage
    • Develop effective training programs
    • Develop evaluation procedures