Creating a Legal Strategy

Every business operates within a framework of laws and regulations. This may vary by industry (business sector) and geography (location). A legal strategy document ensures that the company complies with applicable laws, helps identify potential legal risks, and provides a system for addressing these risks proactively.

There are two (2) unique functions of a #legalstrategy document especially for corporate clients:

• A strategy doc reflects an understanding of the client’s unique circumstances, industry, and business goals and assists an attorney in offering legal advice tailored to their specific needs - a client is equipped to make more informed decisions. They can evaluate options, balance risks, and pursue actions that align with their long-term business interests.
• It provides a clear road-map for navigating legal issues. It outlines steps, processes, and priorities, which helps them understand the legal landscape, anticipate risks, proactive respond to challenges and align their business decisions with sound legal principles.

Personally, I love creating strategy documents - let's look at a draft which I created for a #lending business:

INTRODUCTION

A lending company would chiefly have to decide on these things:

Loan Product Design

Define the types of loans offered (e.g., personal loans, business loans) loan amounts, repayment periods, interest rates, and fees.

Loan Approval Workflow

A lending company has to define the specifics for loan approval starting from the Loan application method - Pre-screening - Credit Evaluation - Risk Assessment - Decision Making - Documentation - Disbursement and finally post approval monitoring methods (where the loan is authorised).

Repayment and Collection

Repayment options must be diverse and collection methods should be tiered based on client's responsiveness to repayment.

STRATEGY

Regulatory Compliance - Loan Structure - Credit Risk Management are in my first three things to address

Next on the list;

Default Management and Recovery

The goal is to recover the outstanding debt while minimizing losses - a balance must be struck between lenders protecting their financial interests and offering fair loan terms to borrowers.

So how do you craft a Legal Strategy Doc?

Follow this simple acronym:

L.E.G.A.L.

1. L – Legal Compliance: Ensure that the business complies with all relevant laws and regulations, including licensing, tax laws, and industry-specific regulations.
2. E – Evaluate Risks: Identify and assess potential legal risks (e.g., contract disputes, regulatory fines, IP theft) that could impact the business.
3. G – Guard Intellectual Property: Protect the business’s intellectual property by registering copyrights, trademarks, and patents, and enforcing rights when necessary.
4. A – Agreements & Contracts: Draft clear and enforceable contracts with clients, partners, employees, and vendors to ensure mutual protection and define roles, responsibilities, and obligations.
5. L – Litigation & Dispute Resolution: Develop a plan for resolving disputes, using alternative methods like mediation or arbitration to avoid costly litigation, and clearly define processes for handling breaches.

Time to get started!

Let me know if you found this useful.