Experienced Business Law And Dispute Resolution Representation

Risk assessment, preventive measures useful to businesses

On Behalf of | Mar 16, 2021 | Business Risk Management

Running a Utah business means facing risks. As much as you would love to, you cannot make everyone happy all the time. As a result, you face the chance of your business dealing with a dispute with a client, customer, shareholder, partner, or another outside party or entity. Because this chance exists, it is important that you take litigation preparation seriously, even if there is no current case in site.

Staying on your toes in the business world could prevent serious issues that could derail your company. Preventive measures often help more than having to fix a problem after it happens, and fortunately, you can take a number of steps to help yourself and your business work to prevent issues and be prepared to effectively handle litigation if necessary.

What can you do?

One of the biggest ways you can prevent issues is by conducting risk assessments periodically. Your business may not be perfect by any means, but if you notice an issue that could turn into a major problem if left unaddressed, you would be wise to address that issue as soon as possible. The issue could relate to conflict between employees that needs handling before it turns into a company problem or an area that could cause a dispute between partners that needs addressing before a dispute arises.

Communicating clearly could also help reduce risk, prevent issues and show evidence of trying to resolve a problem before it goes to court. If you communicate your concerns with your business partner early, you may be able to prevent a legal dispute. If you ensure that your employees understand anti-harassment and anti-discrimination policies from the outset, you may prevent employment lawsuits relating to those issues.

Documentation

Though communicating clearly when having a verbal conversation could go a long way, it is also necessary that you get agreements, transactions, policies and more in writing. Having a written contract could prevent any confusion that could lead to conflict later. For example, having an employee sign a disciplinary form after you reprimanded him or her for unsuitable workplace behavior could prevent a claim that you did not handle an employment matter properly.

Though these measures are hopefully preventive, they could also act as vital evidence in the event that you and your business do face a legal dispute of some kind. Therefore, it is essential that you ensure that your contracts, agreements and other forms are legally binding before putting them into effect.