Speaker 1: Welcome back to the B1 series on legal management. Today I would like to discuss with you this one slide. Have you ever thought whether you are really a legal risk manager? And if yes, why should you be one? And have you understood how a risk management process really works? Well, today I would like to show you in five steps how this process works. And we start with the first step, which is identifying and analyzing the risk. Here I strongly recommend that you put most time and effort into this step to analyze and find the risks. If you don't find it here, you will lose it throughout the process. So make sure you have understood what the risk is for you as a company or for the customer. Second, once you have defined and found this risk, please evaluate the risk. Which means you just use two criterias to make an assessment. Which means, first, you ask yourself, how likely is it that I will be faced with this risk in the future? This is the likelihood. Second, you ask yourself, well, if this risk will really materialize in the future, how big will the damage be? Let's make an example for you as a lawyer. Let's assume a customer approaches you and he will explain to you that he has been sued by a competitor. Now you have this case and you have to make the assessment. First, how likely is it that your customer will win the case at court? Second, he for sure will ask you, how big will the damage be in case I lose the case? So, likelihood and the size of the damage will be the two assessments to just evaluate the risk. This, again, is not easy. Third, once you have identified the risk, evaluated, you ask yourself, what kind of measures do you have to take to just control this risk a little bit? And you have four options. One, you accept the risk and you say, I don't care. Whatever comes, I will take the risk. Or two, you ask yourself, well, the risk is too high. Maybe I don't want to enter, maybe, at all into this risk. Three, you may take measures to reduce it a little bit. And four, you go and ask yourself, is there anybody out there who could just absorb my risk? Think in terms of insurance policies. Again, we have started with identifying the risk, evaluating the risk, and now taking the measures. Once you have done that, we move on and you control and monitor your risk. That means at the end of the year, once it's over, you check, have the measures you have taken really been the ones which have influenced in a positive way the risk? Otherwise, you take for the next round other measures. And five, once you have achieved that, ask yourself, once you have seen everything, what is your risk appetite? How much risk do you really want to take and maybe change your behavior in terms of working in the market? Well, I hope this was helpful for you to understand in a nutshell how a risk management process works. If you like this video, check also the other ones. Simply subscribe on YouTube for more. And if you want to leave a message, thanks in advance for doing so and sharing. I look forward seeing you again. And don't forget, stay tuned on the Legal Management channel.