Risk management
Risk management is the process of identifying, assessing and reducing risks to a business, such as legal, financial, operational and reputational risks. It is a business management term rather than a legal one, although contracts, insurance and corporate structure are key legal tools for managing risk.
How BC law treats it
Directors of a BC company must act honestly and in good faith with a view to the company's best interests and exercise the care, diligence and skill of a reasonably prudent individual under the Business Corporations Act, SBC 2002, c 57 (BCBCA), s. 142, which supports reasonable attention to significant risks.
What it means for your business
Good contracts, adequate insurance, compliance procedures and a sensible corporate structure are the foundations of legal risk management.
Risks and common mistakes
Operating without written contracts or adequate insurance can expose the business, and sometimes its owners, to avoidable losses.
Browse the full Fulcrum Law Dictionary for related terms.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
