Document background
A Legal Risk Assessment is a crucial document required for organizations operating under Dutch jurisdiction to evaluate and manage their legal risks effectively. This document should be prepared when organizations need to conduct a systematic review of their legal risk exposure, typically during significant organizational changes, before major transactions, as part of annual compliance reviews, or when entering new markets. The assessment comprehensively examines potential legal risks across various aspects of business operations, including contractual obligations, regulatory compliance, corporate governance, and potential litigation exposure. Under Dutch law, while not always statutorily required, a Legal Risk Assessment is considered a best practice for good corporate governance and risk management, particularly for regulated industries and larger corporations. The document serves as both a diagnostic tool and a strategic planning instrument, helping organizations align their risk management practices with Dutch legal requirements and international best practices.
