At times one may feel that the legal opinion is a bit too rigid and conservative and fails to recognize the dynamics of the sector, but in the end we all need to appreciate that legal risks have to be accorded prime consideration and addressed. What is legal risk?
There appears to be no concrete definition for the expression “legal risk” nor do I venture to make an attempt at defining it considering the complexities and variations in the risks involved. The Basel II accord covers “legal” risk under “operational” risk.