Research On Business Legal Risk Prevention In GDMM Company

With the development of economic globalization and the rule of law concept being brought forward, enterprises, state-owned enterprises in particular, are supposed to enhance the awareness of legal risk prevention and further improve the mechanism of legal risk prevention. T he market economy is essentially an economy under rule of law, any enterprise engaged in market activities are constantly faced with legal risks, especially the global financial tsunami triggered by the U.S. subprime mortgage crisis, is testing state-owned enterprises in Ch ina in the fight against risk. The GDMM Company, as a state-owned professional foreign trade enterprise, has been hit by the overall economic environment in recen t years and got stuck in num erous legal disputes, which has incurred gr eat legal risk and a certain loss to the company. To secure stable business operation and development of the company in the future and guarantee the safe operation of state-owned asse ts, it is urgent that a sound legal risk prevention mechanism shall be established within the company.Firstly, the author in troduces the concept and characteristics of legal risk, and to expound the enterprise legal risk theory in both causes and classification. Legal risks get several features which include deriving from law enforcement process, resulting in non-normative, and having unintended conseque nces and the possibi lity of adverse consequences. In accordance with the causes of risk, legal risk can be divided into four categories including the of fence risk, the legal r isk of legal uncerta inty, processing legal risk and other legal risks.Secondly, the authors introdu ces the com pany profile of GDMM, the statem ent of legal risk events includes Case of soft credit term s of GDMM com pany, counterfeit bond case of Guangfeng, case of the deliv ery of goods without th e original Bill of lading of Xiahai Port Authority and case of the payment of steel of Hangu company in Tangshan, we will divide the cases into credit events, bills of lading events, legal risk of fraud in light of the risks of the legal aspects. And we will discuss the several kinds of legal risks that reflect in those cases, to analyze the causes of legal risks.The first two chapters elaborate the lega l risks of GDMM company and the causes of those legal risks, we set out four measures to the p revention of the legal risks: to consummate the legal risk m anagement institution, to im prove the legal ris k management system, to establish legal risk managem ent information system and shape the culture of law-abiding business ope ration. This paper is trying to build and perfect the legal risk prevention system, to be a reference to the sim ilar state-owned trade enterprise.