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Risk Management in Spain

Risk Management in Spain

Updated on Thursday 25th August 2016

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Risk-Management-in-Spain.pngA company can be exposed during its lifetime to various risks, which can be caused by internal or external factors. Risk management refers to the set of measures which can be taken by the representative of the company in order to assess the main threats of the respective business. Such procedures are aiming at determining the causes for which such risks may occur and they can also provide theoretical solutions. Our team of Spanish lawyers can provide legal assistance to local and foreign businessmen who are interested to assess the risks to which their companies are exposed to. 
 

Potential risks of a Spanish company  

 
Foreign investors who are interested to set up a company in Spain should know that, regardless of the incorporation location or the business field in which they set up their activities, the company may experience various risks
 
Risks may arise from internal factors, for example, a cut in the production line or the increase of the price of one of the main materials used by a factory. Other risks can refer to employment strikes or a lack of strategy on the long term. 
 
External risks refer to those events which were not created by the company, but which appeared in a social context (political turmoil, strikes, natural disasters, financial issues). 
 
Risk management is performed within a company with the purpose to provide a comprehensive image of the real threats of the respective business. In order to do so, the businessmen will have to identify the weak aspects of his or her business, and to implement various strategies in order to avoid or to minimize the negative effects on the company; our team of Spanish attorneys can offer more details on this matter. 
 

Investment risks in Spain  

 
In the same category we can also include the investment risk, which refers to the potential threats which may appear during an investment project or when an investor takes an investment decision. The risk management applicable in this case is crucial to the outcome of the respective business, as any wrong decision could impact the investor’s assets
 
Businessmen interested in receiving more details on the risk management in Spain can address to our Spanish law firm for an extensive presentation. 
 

Comments

  • Eva 2016-08-25

    This procedure should be taken into consideration by any company which has several years of experience in its field and had the time to develop. Of course, newly formed companies should also consider its possible risks, but I assume there are fewer in this stage.

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