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Glossary › Legal Risk
What is Legal Risk ?
Legal risk includes exposure to litigation, regulatory penalties, contractual disputes, and compliance failures. In TPRM, legal risk assessment ensures vendors do not introduce liabilities through non-compliance or improper handling of regulated data.
FAQs
What causes legal risk?
Regulatory violations, contract breaches, or misuse of data.
Do vendors increase legal risk?
Yes, especially if they operate in regulated industries.
Can legal risk be mitigated?
Through strong contracts, oversight, and compliance monitoring.
Responsible-AI TPRM Guide
Discover how risk teams apply AI responsibly to reduce third-party blind spots and stay audit-ready across global regulations.