Читать книгу Non-financial Risk Management in the Financial Industry - Группа авторов - Страница 64

The BCBS states that “legal risk includes, but is not limited to, exposure to fines, penalties, or punitive damages resulting from supervisory actions, as well as private settlements.”[99] The ECB’s glossary defines legal risk as “the risk of a loss being incurred on account of the unexpected application of a law or regulation, or because a contract cannot be enforced.” The FED states that “legal risk arises from the potential that unenforceable contracts, lawsuits, or adverse judgments can disrupt or otherwise negatively affect the operations or condition of a banking organization.”[100]

From Asia-Pacific, a further description of legal risk is provided by the Reserve Bank of India:

“Legal risk may vary from institution to institution depending on the manner in which it conducts its business and the documentation it follows. The legal risks primarily arise either due to lack of clarity of the documentation of the product or the act of the counterparty. Change in legal environment due to legislative changes and Court interpretations/proceedings also result in legal risk. Legal risk includes risk of non-enforceability of contract or in-correct documentation resulting in the increased probability of loss. Broadly, legal risks may result in, (i) claims against institution, (ii) fines, penalties, punitive damages, (iii) unenforceable contracts resulting from defective documentation and (iv) loss of institutional reputation.”[101]