loans

Place less reliance on the legal system for redress – it is often too slow and expensive. There are cheaper and faster industrial arbitrators. You can create your own insurance protection. Then, there is the more constructive financing and hedging role being offered by traditional insurance companies and captives to handle your operational risk loss. Make necessary variations and amendments to take into account local risk practices, e.g. in an emerging market. You should have thought about it beforehand, not afterwards.
The Kalashnikov school of risk management is a frivolous thought at first sight. But occasionally, you have to show the potential or intent to injure a counterparty, even if it means a non-violent sense of destroying their reputation. New York Attorney General Eliot Spitzer’s investigation and fines on Wall Street, the shareholders’ revolt against executive pay at GlaxoSmithKline, freezing the payoff to Messier at Vivendi, the lawsuit against the Equitable Life directors are just examples of this vengeful trend. The Russians call this “kompromat”. For some companies, their reputation is their livelihood. It can be destroyed.