Legal Risk Management

Legal Risk Management

Legal Risk Management

  Legal risk management is one of the major businesses of SUNHOLD. SUNHOLD is well known for its services which providing legal risk detailed management for corporations. Core lawyers of our team, with abundant legal risk management practical experiences, have systematic education both in legal management and economic management. We could offer overall solution of identifying, examining, quantizing, controlling and managing legal risks. Our services could improve clients’ management efficiency and cut cost. In this way, SUNHOLD could achieve core target of SUNHOLD legal risk management, that is, sustainable development. Right now, SUNHOLD has established a complete product chain of legal risk management, especially the corporation legal risk management service is quite mature that SUNHOLD could offer services based on client’s different requirements.



Corporation Legal Risk Evaluation Service

  Evaluation is the first step of corporation legal risk management. To ensure sustainable development, corporation management should formulate and executive corporation legal risk strategies through clearly understanding its overall legal risks and influences. Cost analysis of legal risks is the foundation of SUNHOLD legal risk evaluation service.


Our Expertise:

  SUNHOLD service of corporation legal risk index evaluation

  SUNHOLD service of corporation overall legal risk

  SUNHOLD service of business procedure legal risk evaluation

  SUNHOLD service of project legal risk evaluation

  SUNHOLD’s service of listed company legal risk index evaluation

  Corporation Legal Risk Management Service


  SUNHOLD legal risk management is a preventive legal risk management system which specialized in process identification, example analysis, quantitative evaluation, cost analysis, software management and dynamic support. Using managerial way to solve corporation legal risk issues is the basic conception of this system and using economic language to descript corporation legal risk is its principle. This system provides our clients long-term, overall and dynamic solving plan for legal risk management which regarded as the only corporation legal risk management system founding on the theory of corporation legal risk detailed management.


Four distinctive features of corporation legal risk detailed management 

  1.    Legal risk cost analysis

  In order to achieve the goal of using economic language to descript legal risks, SUNHOLD applied legal risk cost theory, method and means to analyze and descript corporation legal risks. Through the analysis of legal risk cost, corporation management could truly comprehend corporation legal risk’s influence on operation targets and its corporation legal risk management level compared with other companies. Corporation management will achieve the real legal risk management by using this method.

  2.    Legal risk example analysis

  Primarily founding on the base of example analysis, corporation legal risk detailed management system could analyze legal risk behavior and legal risk cost. In a certain extent, the example analysis could provide much persuasive results and avoid the uncertainties and mistakes brought from experiences and subjective judgement.

  3.    Legal risk position control

  Corporation legal risk detailed management system emphasizes the function of position control in the whole structure. This system holds that corporation should separate its legal risks into each position in order to prevent and control legal risks. It means the system will inform each position what legal risks they may face while working and how to prevent and control it. Each position will encounter much lesser legal risks after process optimization. Legal risk position control could made targeted employee legal training possible and also assist the founding of scientific legal risk responsibility allocation and accountability system.

  4.    Legal risk information statistics

  The establishment of legal risk information statistics could ensure systematicness of corporation legal risk identification as well as objectivity and accuracy of legal risk cost estimation. It provides a stable foundation for prediction and real time monitor of corporation legal risks.

Our Expertise:

  SUNHOLD service of corporation overall legal risk management  

  SUNHOLD service of corporation department legal risk management 

  SUNHOLD service of corporation managing /business procedure legal risk management

  SUNHOLD service of project legal risk management

  SUNHOLD special service of corporation senior executive legal risk management


Government legal risk management service

  The construction of harmonious society is the prior mission of government. However, administrative malfeasance becomes the largest hidden trouble in the process of construct harmonious society. SUNHOLD government legal risk management services mainly contain overall arrangement of government business procedures, identification of the potential legal risks (especially those would cause group event) and proposal of prevention and control measures and emergency plan. Although government legal risk management service has similar identification skills and controlling methods with corporation legal risk management, it has its unique methods and measures in quantitative evaluation and comprehensive evaluation.


Non-profit Organization Legal Risk Management Service

  With the increasing quantity and expansion of area, non-profit organizations have developed rapidly in China. However, the lawsuits which badly influenced these non-profit organizations happened frequently. SUNHOLD legal risk management could assist these non-profit organizations achieve their targets by identifying the potential legal risks, analyzing and evaluating legal risks’ influence and proposing related prevent measures. Non-profit organization legal risk management service has similar identification skills and controlling methods with corporation legal risk management, it has its unique methods and measures in quantitative evaluation and comprehensive evaluation.


Social Elite Legal Risk Management Service

  With the steady improvement of Chinese legislative construction, general improvement of social legal consciousness and rapid development of new media such as Internet, leadership in administrative agencies, senior managers in domestic and foreign companies, owners of private sectors, popular stars, experts, professors, authors, attorneys, accountant and other social elite will encounter more and more legal risks and the consequences might be much serious than before. SUNHOLD social elite legal risk management service provides systematic legal risk management service for those social elites mentioned above.


Examples of Corporation Legal Risk Detailed Management

  1.    Define the client’s targets of corporation legal risk management

  We hypothesized that client’s legal risk beneficial cost is 4,000 Yuan (that means corporation should pay 4,000 Yuan when it earns 10,000 Yuan) and the average legal risk beneficial cost of other listed companies from same industry is 2,000 Yuan. Compared with the average legal risk beneficial cost, we could conclude that corporation legal risk management of our client obviously fall behind and need to strengthen. Based on our analysis above, we suggest our client to set up its target of legal risk management which reduced legal risk beneficial cost to 2,000 Yuan (the average level of other companies in same industry).


  2.    Legal risk position control  

  We hypothesized that there are 20 kinds of the related legal risk behaviors of A department B position after systematic identification and judgment. According to lawyer’s suggestion, there are 15 forbidding actions and 10 compulsory actions in the 20 kinds of related legal risk behaviors. In other words, employees of B position are required to fully understand the 25 actions and carry out in their daily works. This requirement is comparatively easy for we attached related cases and academic articles to each legal risk behavior to helping employees to understand it.  


  3.    Performance Evaluation

  We hypothesized that general manager of A Corporation need to made performance evaluation of its subsidiaries B and C. The annual profits of these two subsidiaries are the same, 10,000,000 Yuan. The size, financial situation, personnel, structure construction and other aspects are quite similar and hard to make distinction between them before. We will analysis all statistics and figure out that B’s legal risk cost index is 2,000 Yuan and C’s legal risk cost index is 6,000 Yuan. In this way, general manager could easily find out which subsidiary is better than the other. Obviously, B is the better one.


  4. Project Evaluation  

  We hypothesized that one investor has investment funds about 10,000,000 Yuan and faces two investment projects (project A and project B) to choose. In both projects, 10,000,000 Yuan equals 10% shares. The estimate gross sales of these two projects are 100,000,000 Yuan. A project cost is 70,000,000 Yuan and B project cost is 75,000,000 Yuan. We could conducted that the return rates of project A is 30% and return rates of project B is 25%. Obviously, investor will invest project A base on normal judgment. However, these two projects’ legal risk cost indexes are quite different. After our project evaluation, we calculated that legal risk cost index of project A is 1500 and legal risk cost index of project B is 500. Based on our calculation, the return rates turned out to be 15% of project A and 20% of project B.   


  5. New Business Procedure Evaluation

  Supposed our client want to launch a new product A. Its uniform price is 120 Yuan, direct cost is 60 Yuan and management cost is 10 Yuan. It means that each product’s pure profit is 50 Yuan. Based on analysis above, client think this product is a good choice to investment. However, legal risk cost index is 5000 after SUNHOLD lawyers’ procedure evaluation. That means product cost is 120 Yuan which almost the same as its uniform price. The only way our client need to do is raise uniform price (if market could accept its price) or suspend its launching.


SUNHOLD Service of Cross- teams Coordinated Permanent Legal Consult

  The cross-teams coordinated permanent legal consultant service of SUNHOLD has academic supports offered by Corporation Legal Risk School of the Society for Research on Chinese Business Law. This service is not merely updated the traditional corporation legal consulting service but a real revolution. Traditional corporation legal consultant means only one lawyer but SUNHOLD cross-teams Coordinated Permanent Legal consulting service equals cross-teams (including professors and experts of academic area, corporation legal risk consulting team, industrial law research team and lawyers) and real time updated industrial legal risk management database. With professional cross-teams supports, SUNHOLD lawyers will provide prefect permanent legal consulting service for our clients.


  Our Expertise:  

  Industrial law research team: Providing first hand industrial legal data and information as well as professional depth analysis. Ten teams of different industrial studies of Research School of Chinese Corporation Legal Risk will collect and analysis industrial disputes and related legal information as well as provide specific legal opinion.

  Corporation Legal Risk Managing Consulting Team: Providing suggestions of prevent and control legal risks in management and legal angles, calculating and real time monitoring industrial legal risk cost index.

  Team of Legal Experts and Professors:

  This team is composed with first class experts and professors from Research School of Chinese Corporation Legal Risk. Based on real time data providing by other teams, they study key legal industrial legal issues, estimate legislation and provide legal suggestions for well development of our clients.  

  Industrial Legal Risk Management Database: all data and analysis results collected by all teams will restore in this database.