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How to Transform Legal Obstacles Into Strategic Opportunities:

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Leveraged Decision Making i

How To Transform Legal Obstacles Into Strategic Opportunities:
Leveraged Decision Making

Catherine Barker
Business Law II BA265
Professor James Wicks
February 18,2013 Leveraged Decision Making 1 The purpose of legal literacy is to make the law work for you instead of against you. It is the combination of compliance and performance management that transforms the relationship between law and business into a business sweet spot. To reduce, transfer, or avoid legal risks a company can take steps during the decision-making process to identify and manage the risks. The five steps to leveraged decision-making lets you identify when and where legal risks occur in the value chain and how much leverage you want to achieve. The first step is to identify the strategic business objective. You must clearly identify what you are trying to accomplish. The business objective should be specific so that all departments in the value chain have a good understanding of the business benefit and end goal. In addition, you must ensure that you have effective compliance and ethic programs in place. The second step is to identify the relevant legal issues. This is where the experts in the value chain combine their acquired experiences and skills to identify any relevant legal issues and to weigh the pros and cons of the various options to arrive at the best plan of action. The value chain lets you develop a better understanding of the legal health of an organization across the full spectrum of employee activity. Employees who understand the consequences of their decisions are able to make better risk assessments. Better risk assessments allow you to identify how, when, and where these legal risks are embedded in the value chain. The third step is to identify how serious the risk is by

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