Meaning ● Proactive Legal Risk Management, in the context of SMBs, represents a forward-thinking approach to identifying, assessing, and mitigating potential legal issues that could impede growth, automation initiatives, or implementation of new strategies. Foreseeing potential issues allows for structured risk management. ● This involves implementing strategies, processes, and internal controls to minimize the likelihood and impact of legal problems before they arise. Automation, with its increased data processing and customer interaction, inherently expands the legal risks an SMB may face. ● By proactively addressing these concerns, SMBs can maintain compliance, safeguard their assets, and foster a stable environment for sustainable growth, as preventing legal issues proves cheaper than reacting to them. A robust proactive legal plan allows for better resource allocation.
