According to the text, the significant difference between legal risk and other types of risk is to do to the fact that legal uncertainty, a subset of operational risk, legal has no standard definition. Besides, most agree it involves the risk of loss to an institution caused by a defective transaction or a claim (including a defense to a suit or a counterclaim).  In other words, lawyers and citizens alike are sue crazy.  Since a class action is in place as a check and balance, businesses are inspected by those looking to make money. To protect themselves from legal actions, companies and institutions have implemented strategies and preventive measures to handle these potential legal problems.

Now, think of a company you know well. What type of products or services does this organization bring to the market? 
By Every Word Productions is my production company that produces music, video, web, and photo media.

Where is there a potential legal risk for this company? Finally, what can be done to mitigate the risk?
Risks are mostly copywriter infringement. On one instance after doing a webpage for the church, we received an email demanding thousands of dollars for a picture that was used from the internet stock.  After some research, it was found that this company was fraudulent.  It would look for images created by internet stock and then send semi-official letters demanding payment.  Some people would pay them never realizing they were being ripped off.  We just took down the picture in question, for appearance sake, and never responded other than that. Other risks are on the side of breaking of contracts.  Many songs are open for use through various services, being paid seems always to be a battle.  To mitigate these risks, only images supplied locally or from open stock should be used, and music contracts should be canceled with firms that produce no royalty payments. 

Dr. Diana Echols
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