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a risk management framework should be simple but not simplistic if a frontline manager cannot use and understand the framework it probably isnt much use finance people talk about common sizing so they can compare financial statements and projections a good risk management framework should serve the same purpose the latest problem is not necessarily the biggest problem even though that phone call you got from your in-house counsel just now suggests the contrary where do we begin to design a risk management framework we have not explained how we might common size for example the risk of a patent infringement lawsuit a new sales contract form and a distribution deal in a new country lets begin with a legal risk model that satisfies the concerns we just listed the qualitative risk model
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