Abstract
Much of corporate finance law is about the management of risk. This chapter will discuss the nature of legal risks as well as the most general ways to manage legal risks and other risks by legal means. For example, the importance of legal compliance programmes in the management of legal risks will be explained. It will also be argued that incorporation and contracts are the two most general ways to manage other risks by legal means in corporate finance law. The chapter on corporate risk management will provide a broader and more detailed account of the risk management processes of firms and the legal regulation of risk management. Volumes II and III will provide guidance on risk management in the context of contracts and particular financial transactions.
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