Legal risks management in the economic sphere

Keywords: legal risk management, legal risk analysis, legal risk assessment, fiscal risks, economic safety, overcoming the consequences of legal risks

Abstract

A significant number of regulatory acts that determine economic activity leads to an increase in the risk of losses in the economic sphere. Thus, some norms of the laws may worsen economic results due to inadequate or misleading interpretation of the conditions of the activity that violates the country’s economic safety and requires its protection.

According to the results of the analysis and assessment of legal risks in the economic sphere, the author notes that the lack of management of legal risks causes irreparable damage and leads to the need for damages reimbursement, payment of fines and penalties, administrative and criminal liability, hinders the further development of the activities. In order to reduce the losses of the state budget of the country and certain economic entities, it is necessary to study the consequences of legal risks in the economic sphere with a view to their further management.

Based on the analysis of the current legislation of Ukraine and the generalization of the main provisions of the work of scholars, the author has established the consequences of legal risks in the economic sphere in order to reduce the losses of the state budget of the country. The factors influencing the size of possible losses have been also considered.

According to the author, the essence of legal risks management in the economic sphere is to overcome the negative economic consequences by the results of their analysis and evaluation. The author has provided propositions on the mechanism of analysis of the economic consequences of legal risks and the preparation of the results of such an analysis. By the example of legal risk management of banks, the author has presented possible components of the management system, aimed at overcoming the possible consequences of legal risks in the economic sphere.

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Author Biography

S. V. Yevdokimenko, Kharkiv Economics and Law University

Department of finance, accounting and audit;
Doctor of Juridical Sciences.

References

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Abstract views: 230
PDF Downloads: 122
Published
2018-11-27
How to Cite
Yevdokimenko, S. (2018) “Legal risks management in the economic sphere”, Law and Safety, 70(3), pp. 35-39. doi: 10.32631/pb.2018.3.05.

Section
ECONOMY, ENTREPRENEURSHIP, CIVIL AND COMMERCIAL LAW