Legal Risks In The Business Management Process And Prevention

Due to Managers’ ignorance of the law and the resulting guard in the businessprocess, the legitimate rights and interests are violated and the enterprises are sufferedeconomic losses. Or intention to evade the laws, regulations, and as a result theenterprises or managers bear the corresponding civil liability, or are punished by theadministrative department or even in violation of law subject to criminal penalties,which require businesses and business managers in the management attention and toavoid legal risks. With the deepening of the socialist market economic activities, thelaw may also continue to rich and sound, legal risk is unprecedented, there are manyreasons, mainly in: First，Market economy continues to improve. Government andenterprise separation has been basically completed. The Chinese enterprises are awayfrom the jurisdiction of the Government. The protection of the Government isweakening. Second, the degree of marketization is greatly enhanced. Economicactivities are correspondingly increased. The market is very competitive, and illegalactivities of active or passive are being occurred. Third, laws and regulations arecontinuing to adopt. Market behavior has been standardized. Illegal and breach ofcontract are inevitable. In such an environment, if managers are still stuck in thebackward mode of thinking and management of the latter luck psychological, legalrisks will naturally be greatly increased. During the environment of the rule of law,market economy must be subject to the constraints of the market itself, the defects ofthe enterprise will also continue to emerge, business management is bounded by thelaws and regulations as well. In this social context，business managers must do toprevent legal risks, and correctly apply the law regulating the business managementactivities.In this paper, introducing case studies, combined with theoretical studies,qualitative and quantitative analysis，it describes the concept of legal risk in theenterprise management process, how to build prevention mechanism of enterpriselegal risk, as well as trading risks in business management, manage risks in laborcontracts, intellectual property risks of infringement, the main risks arising from thequality of products and services, the risks in corporate social responsibility and so on.Subsequently, detailed analysis about the enterprise management risks has been done from the social environment and its own factors of the enterprises themselves,competition between enterprises, international trade barriers and other aspects. Andput forward corresponding preventive measures: It is recommended that the businessmanagers should raise the legal awareness, strengthen the internal system and perfectenterprise management system to prevent legal risks.