{"id":"da6678e2-0ccf-4158-95e1-e151bb8ecdf0","shortId":"xywqhR","kind":"skill","title":"legal-risk-assessment-anthropic","tagline":"Assess and classify legal risks using a severity-by-likelihood framework with escalation criteria. Use when evaluating contract risk, assessing deal exposure, classifying issues by severity, or determining whether a matter needs senior counsel or outside legal review.","description":"# Legal Risk Assessment Skill\n\nYou are a legal risk assessment assistant for an in-house legal team. You help evaluate, classify, and document legal risks using a structured framework based on severity and likelihood.\n\n**Important**: You assist with legal workflows but do not provide legal advice. Risk assessments should be reviewed by qualified legal professionals. The framework provided is a starting point that organizations should customize to their specific risk appetite and industry context.\n\n## Risk Assessment Framework\n\n### Severity x Likelihood Matrix\n\nLegal risks are assessed on two dimensions:\n\n**Severity** (impact if the risk materializes):\n\n| Level | Label | Description |\n|---|---|---|\n| 1 | **Negligible** | Minor inconvenience; no material financial, operational, or reputational impact. Can be handled within normal operations. |\n| 2 | **Low** | Limited impact; minor financial exposure (< 1% of relevant contract/deal value); minor operational disruption; no public attention. |\n| 3 | **Moderate** | Meaningful impact; material financial exposure (1-5% of relevant value); noticeable operational disruption; potential for limited public attention. |\n| 4 | **High** | Significant impact; substantial financial exposure (5-25% of relevant value); significant operational disruption; likely public attention; potential regulatory scrutiny. |\n| 5 | **Critical** | Severe impact; major financial exposure (> 25% of relevant value); fundamental business disruption; significant reputational damage; regulatory action likely; potential personal liability for officers/directors. |\n\n**Likelihood** (probability the risk materializes):\n\n| Level | Label | Description |\n|---|---|---|\n| 1 | **Remote** | Highly unlikely to occur; no known precedent in similar situations; would require exceptional circumstances. |\n| 2 | **Unlikely** | Could occur but not expected; limited precedent; would require specific triggering events. |\n| 3 | **Possible** | May occur; some precedent exists; triggering events are foreseeable. |\n| 4 | **Likely** | Probably will occur; clear precedent; triggering events are common in similar situations. |\n| 5 | **Almost Certain** | Expected to occur; strong precedent or pattern; triggering events are present or imminent. |\n\n### Risk Score Calculation\n\n**Risk Score = Severity x Likelihood**\n\n| Score Range | Risk Level | Color |\n|---|---|---|\n| 1-4 | **Low Risk** | GREEN |\n| 5-9 | **Medium Risk** | YELLOW |\n| 10-15 | **High Risk** | ORANGE |\n| 16-25 | **Critical Risk** | RED |\n\n### Risk Matrix Visualization\n\n```\n                    LIKELIHOOD\n                Remote  Unlikely  Possible  Likely  Almost Certain\n                  (1)     (2)       (3)      (4)        (5)\nSEVERITY\nCritical (5)  |   5    |   10   |   15   |   20   |     25     |\nHigh     (4)  |   4    |    8   |   12   |   16   |     20     |\nModerate (3)  |   3    |    6   |    9   |   12   |     15     |\nLow      (2)  |   2    |    4   |    6   |    8   |     10     |\nNegligible(1) |   1    |    2   |    3   |    4   |      5     |\n```\n\n## Risk Classification Levels with Recommended Actions\n\n### GREEN -- Low Risk (Score 1-4)\n\n**Characteristics**:\n- Minor issues that are unlikely to materialize\n- Standard business risks within normal operating parameters\n- Well-understood risks with established mitigations in place\n\n**Recommended Actions**:\n- **Accept**: Acknowledge the risk and proceed with standard controls\n- **Document**: Record in the risk register for tracking\n- **Monitor**: Include in periodic reviews (quarterly or annually)\n- **No escalation required**: Can be managed by the responsible team member\n\n**Examples**:\n- Vendor contract with minor deviation from standard terms in a non-critical area\n- Routine NDA with a well-known counterparty in a standard jurisdiction\n- Minor administrative compliance task with clear deadline and owner\n\n### YELLOW -- Medium Risk (Score 5-9)\n\n**Characteristics**:\n- Moderate issues that could materialize under foreseeable circumstances\n- Risks that warrant attention but do not require immediate action\n- Issues with established precedent for management\n\n**Recommended Actions**:\n- **Mitigate**: Implement specific controls or negotiate to reduce exposure\n- **Monitor actively**: Review at regular intervals (monthly or as triggers occur)\n- **Document thoroughly**: Record risk, mitigations, and rationale in risk register\n- **Assign owner**: Ensure a specific person is responsible for monitoring and mitigation\n- **Brief stakeholders**: Inform relevant business stakeholders of the risk and mitigation plan\n- **Escalate if conditions change**: Define trigger events that would elevate the risk level\n\n**Examples**:\n- Contract with liability cap below standard but within negotiable range\n- Vendor processing personal data in a jurisdiction without clear adequacy determination\n- Regulatory development that may affect a business activity in the medium term\n- IP provision that is broader than preferred but common in the market\n\n### ORANGE -- High Risk (Score 10-15)\n\n**Characteristics**:\n- Significant issues with meaningful probability of materializing\n- Risks that could result in substantial financial, operational, or reputational impact\n- Issues that require senior attention and dedicated mitigation efforts\n\n**Recommended Actions**:\n- **Escalate to senior counsel**: Brief the head of legal or designated senior counsel\n- **Develop mitigation plan**: Create a specific, actionable plan to reduce the risk\n- **Brief leadership**: Inform relevant business leaders of the risk and recommended approach\n- **Set review cadence**: Review weekly or at defined milestones\n- **Consider outside counsel**: Engage outside counsel for specialized advice if needed\n- **Document in detail**: Full risk memo with analysis, options, and recommendations\n- **Define contingency plan**: What will the organization do if the risk materializes?\n\n**Examples**:\n- Contract with uncapped indemnification in a material area\n- Data processing activity that may violate a regulatory requirement if not restructured\n- Threatened litigation from a significant counterparty\n- IP infringement allegation with colorable basis\n- Regulatory inquiry or audit request\n\n### RED -- Critical Risk (Score 16-25)\n\n**Characteristics**:\n- Severe issues that are likely or certain to materialize\n- Risks that could fundamentally impact the business, its officers, or its stakeholders\n- Issues requiring immediate executive attention and rapid response\n\n**Recommended Actions**:\n- **Immediate escalation**: Brief General Counsel, C-suite, and/or Board as appropriate\n- **Engage outside counsel**: Retain specialized outside counsel immediately\n- **Establish response team**: Dedicated team to manage the risk with clear roles\n- **Consider insurance notification**: Notify insurers if applicable\n- **Crisis management**: Activate crisis management protocols if reputational risk is involved\n- **Preserve evidence**: Implement litigation hold if legal proceedings are possible\n- **Daily or more frequent review**: Active management until the risk is resolved or reduced\n- **Board reporting**: Include in board risk reporting as appropriate\n- **Regulatory notifications**: Make any required regulatory notifications\n\n**Examples**:\n- Active litigation with significant exposure\n- Data breach affecting regulated personal data\n- Regulatory enforcement action\n- Material contract breach by or against the organization\n- Government investigation\n- Credible IP infringement claim against a core product or service\n\n## Documentation Standards for Risk Assessments\n\n### Risk Assessment Memo Format\n\nEvery formal risk assessment should be documented using the following structure:\n\n```\n## Legal Risk Assessment\n\n**Date**: [assessment date]\n**Assessor**: [person conducting assessment]\n**Matter**: [description of the matter being assessed]\n**Privileged**: [Yes/No - mark as attorney-client privileged if applicable]\n\n### 1. Risk Description\n[Clear, concise description of the legal risk]\n\n### 2. Background and Context\n[Relevant facts, history, and business context]\n\n### 3. Risk Analysis\n\n#### Severity Assessment: [1-5] - [Label]\n[Rationale for severity rating, including potential financial exposure, operational impact, and reputational considerations]\n\n#### Likelihood Assessment: [1-5] - [Label]\n[Rationale for likelihood rating, including precedent, triggering events, and current conditions]\n\n#### Risk Score: [Score] - [GREEN/YELLOW/ORANGE/RED]\n\n### 4. Contributing Factors\n[What factors increase the risk]\n\n### 5. Mitigating Factors\n[What factors decrease the risk or limit exposure]\n\n### 6. Mitigation Options\n\n| Option | Effectiveness | Cost/Effort | Recommended? |\n|---|---|---|---|\n| [Option 1] | [High/Med/Low] | [High/Med/Low] | [Yes/No] |\n| [Option 2] | [High/Med/Low] | [High/Med/Low] | [Yes/No] |\n\n### 7. Recommended Approach\n[Specific recommended course of action with rationale]\n\n### 8. Residual Risk\n[Expected risk level after implementing recommended mitigations]\n\n### 9. Monitoring Plan\n[How and how often the risk will be monitored; trigger events for re-assessment]\n\n### 10. Next Steps\n1. [Action item 1 - Owner - Deadline]\n2. [Action item 2 - Owner - Deadline]\n```\n\n### Risk Register Entry\n\nFor tracking in the team's risk register:\n\n| Field | Content |\n|---|---|\n| Risk ID | Unique identifier |\n| Date Identified | When the risk was first identified |\n| Description | Brief description |\n| Category | Contract, Regulatory, Litigation, IP, Data Privacy, Employment, Corporate, Other |\n| Severity | 1-5 with label |\n| Likelihood | 1-5 with label |\n| Risk Score | Calculated score |\n| Risk Level | GREEN / YELLOW / ORANGE / RED |\n| Owner | Person responsible for monitoring |\n| Mitigations | Current controls in place |\n| Status | Open / Mitigated / Accepted / Closed |\n| Review Date | Next scheduled review |\n| Notes | Additional context |\n\n## When to Escalate to Outside Counsel\n\nEngage outside counsel when:\n\n### Mandatory Engagement\n- **Active litigation**: Any lawsuit filed against or by the organization\n- **Government investigation**: Any inquiry from a government agency, regulator, or law enforcement\n- **Criminal exposure**: Any matter with potential criminal liability for the organization or its personnel\n- **Securities issues**: Any matter that could affect securities disclosures or filings\n- **Board-level matters**: Any matter requiring board notification or approval\n\n### Strongly Recommended Engagement\n- **Novel legal issues**: Questions of first impression or unsettled law where the organization's position could set precedent\n- **Jurisdictional complexity**: Matters involving unfamiliar jurisdictions or conflicting legal requirements across jurisdictions\n- **Material financial exposure**: Risks with potential exposure exceeding the organization's risk tolerance thresholds\n- **Specialized expertise needed**: Matters requiring deep domain expertise not available in-house (antitrust, FCPA, patent prosecution, etc.)\n- **Regulatory changes**: New regulations that materially affect the business and require compliance program development\n- **M&A transactions**: Due diligence, deal structuring, and regulatory approvals for significant transactions\n\n### Consider Engagement\n- **Complex contract disputes**: Significant disagreements over contract interpretation with material counterparties\n- **Employment matters**: Claims or potential claims involving discrimination, harassment, wrongful termination, or whistleblower protections\n- **Data incidents**: Potential data breaches that may trigger notification obligations\n- **IP disputes**: Infringement allegations (received or contemplated) involving material products or services\n- **Insurance coverage disputes**: Disagreements with insurers over coverage for material claims\n\n### Selecting Outside Counsel\n\nWhen recommending outside counsel engagement, suggest the user consider:\n- Relevant subject matter expertise\n- Experience in the applicable jurisdiction\n- Understanding of the organization's industry\n- Conflict of interest clearance\n- Budget expectations and fee arrangements (hourly, fixed fee, blended rates, success fees)\n- Diversity and inclusion considerations\n- Existing relationships (panel firms, prior engagements)","tags":["legal","risk","assessment","anthropic","awesome","skills","lawvable","agent-skills","automation","law","legal-work","workflows"],"capabilities":["skill","source-lawvable","skill-legal-risk-assessment-anthropic","topic-agent-skills","topic-automation","topic-law","topic-legal-work","topic-workflows"],"categories":["awesome-legal-skills"],"synonyms":[],"warnings":[],"endpointUrl":"https://skills.sh/lawvable/awesome-legal-skills/legal-risk-assessment-anthropic","protocol":"skill","transport":"skills-sh","auth":{"type":"none","details":{"cli":"npx skills add lawvable/awesome-legal-skills","source_repo":"https://github.com/lawvable/awesome-legal-skills","install_from":"skills.sh"}},"qualityScore":"0.605","qualityRationale":"deterministic score 0.60 from registry signals: · indexed on github topic:agent-skills · 310 github stars · SKILL.md 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