A legal risk review is a periodic check of how a business is set up, what it has signed and what could go wrong. It is most useful when done before a problem arises, such as before raising funds, signing a major contract or expanding into a new market.
The aim is not to list every conceivable risk but to identify the few that could realistically harm the business and decide what to do about them.
Areas typically reviewed
The scope depends on the business, but a review often looks at constitutional and licensing documents, major customer and supplier contracts, employment arrangements, leases, intellectual property and regulatory obligations.
- Does the licence cover what the business actually does?
- Are key contracts signed, current and consistent with practice?
- Are there change-of-control, exclusivity or termination traps?
- Are employee contracts and policies consistent and up to date?
- Are trademarks, domain names and creative assets owned by the company?
How risks are ranked
Findings are usually grouped by how likely the issue is to occur and how serious it would be. A missing signature on a minor supplier contract is not the same as an uncapped liability clause in your biggest customer agreement. Ranking helps a business spend effort where it matters.
Turning findings into actions
Typical actions include renegotiating a clause, signing a missing document, updating a policy, registering a right or adding insurance. Some findings need a decision from owners rather than a legal fix, such as whether to accept a risk.
How a consultation can help
A consultation can structure the review, read the key documents and present a prioritised summary. It does not guarantee that no claim will arise, and any regulated representation would be by a licensed advocate or other authorised professional.
Frequently asked questions
How often should a business do a legal risk review?
Many businesses benefit from a light annual check and a deeper review before major events such as financing, acquisition or expansion.
What should I prepare?
The trade licence, constitutional documents, key contracts, employee templates, leases and any open disputes or notices.
Is the review confidential?
Confidentiality arrangements can be agreed at the start of an engagement. Documents should be shared only once they are in place.
Related guides and services
- Legal Due Diligence in UAE Transactions
- Reviewing Terms and Conditions for a UAE Business
- Corporate Compliance in the UAE: A Practical Overview
- Corporate & Commercial – all guides
- Corporate Governance
- Commercial Transactions
General information only. Please read our Legal Disclaimer.