On The Common Mangement Of Legal Risks For Small And Medium Enterprises

Enterprise Legal Risk Management Guideline (hereafter referred to as Guideline) has come into effect in 2012. The Guideline offers an official explanation on the definition and principle of enterprise legal risk management, and outlines a guide on the performance of the legal risk management, which signifies the domestic promotion of legal risk management for enterprise.However, Guideline only aims at major enterprise. For small and medium enterprise (hereafter referred to as SME), Guideline fails to offer corresponding guidance. Meanwhile, during my internship in a law firm in Guangzhou, I found that most local SME are not familiar with legal risk management, and lack of legal support on identification and control of enterprise legal risk. In addition, by searching and analyzing relevant literature, I learnt that since 2007 the situation of legal risk management for China SME is far from satisfactory. A number of SME do not have legal department, relevant professionals or sufficient expense on legal affairs.Taking into consideration the plight of SME legal risk management and current legal environment in China, the article will analyze three common SME legal risks, namely the manage of contract, intellectual property and human resource, point out the major risks of them, and introduce solutions on how to control the risks.I hope this article could help SME improve management of legal risk, and make contribution to the research of enterprise legal risk management...