This study discusses the mutual influence and cross-relationship between legal risk management and litigation dispute management in the business environment. With the intensification of globalization and digitalization, the legal risks faced by enterprises are increasingly complex and diverse, and litigation disputes occur frequently. This paper, on the basis of the basic concept and framework of legal risk management and litigation dispute management, analyzes the influence of legal risk management to reduce litigation disputes, the feedback of legal risk management strategy and the interaction between the two, reveals the weak link in legal risk management, and the improvement of litigation dispute feedback. It is found that effective legal risk management can significantly reduce the occurrence probability of litigation disputes, and the management experience of litigation disputes in turn provides practical feedback for legal risk management and promotes its optimization and improvement. This paper puts forward specific suggestions for improving legal risk management and litigation dispute management in the business environment, including comprehensive risk identification and assessment, scientific strategies and tools, systematic system construction, active culture construction and advanced technology application. Through these measures, enterprises can improve the ability to prevent and control legal risks in the complex and changeable business environment, reduce the occurrence of litigation and disputes, and maintain the ability of competitive advantage and sustainable development.