Definitions for "legal risk"
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