A description of the potential for loss arising from the uncertainty of legal...
The risk to earnings or capital arising from unenforceable contracts, lawsuits, adverse judgments, or nonconformance with laws, rules, and regulations. One of six risks defined by the Federal Reserve. The Office of the Comptroller of the Currency (OCC) uses a slightly narrower definition for what it calls compliance risk.
The possibility of losses from contracts that are not legally enforceable or not properly documented
The risk of loss due to legal actions or uncertainty in the applicability or interpretation of contracts, laws or regulations.
The risk that a firm violates statutes, either it's own or legislative. Given the complexity of corporate law, accidental violation even in the normal course of business is not unheard of. Certain activities, such as acquisitions, increase the level of legal risk. Further, certain instruments, such as OTC securities, typically carry higher legal risk than exchange traded instruments, since their legal form and conditions are not standardized.
Risk from uncertainty due to legal actions or uncertainty in the applicability or interpretation of contracts, laws or regulations.
the risk that a counterparty to a transaction will not be liable to meet its obligations under law. Such difficulties may arise from a number of causes, one of the most common being that the transaction was not sufficiently well documented to be legally enforceable.
Risk relating to legal uncertainties.
the risk of loss because of the unexpected application of a law or regulation or because a contract or other right cannot be enforced.
The risk that a change in law or a legal action undertaken against an organisation may affect the organisation's value or income.
Legal and regulatory risk: Sometimes governments change the law in a way that adversely affects a bank's position.