---
title: "Risk Assessment"
url: "https://legal.ge/en/service/corporate-and-commercial-law-en/risk-assessment-226-en"
field: "Corporate & Commercial Law"
description: "Comprehensive legal risk assessment for businesses in Georgia. Identify and analyze liabilities with experts on Legal.ge."
reviewed: "2026-07-09"
updated: "2026-10-15"
publisher: "legal.ge"
---

# Risk Assessment

> Source: legal.ge, https://legal.ge/en/service/corporate-and-commercial-law-en/risk-assessment-226-en

**Introduction: What is Risk Assessment?**

Risk Assessment is a fundamental legal and business process that involves identifying, analyzing, and evaluating potential threats inherent in an organization's activities. Unlike narrowly specialized assessments (e.g., only tax or operational), this service offers a holistic, 360-degree view of a company's legal health. For businesses operating in Georgia, which often face complex challenges, a general risk assessment is the first step in strategic decision-making. This service is particularly relevant before making investments, during reorganization, or as part of an annual "Legal Health Check."

**What Does This Service Cover?**

Risk assessment involves a complete diagnosis of the company's legal ecosystem:

-   **Corporate Structure Analysis:** Checking the charter, shareholders' agreement, and governance structure for flaws.
-   **Contractual Risk Audit:** Reviewing key contracts (lease, supply, service) to identify unfavorable terms.
-   **Litigation History and Outlook:** Analyzing current and potential disputes and forecasting financial impact.
-   **Legal Status of Assets:** Verifying the correctness of registration for real estate, movable property, and intellectual property.
-   **Baseline Compliance Check:** General alignment with tax, labor, and administrative legislation.

**Common Real-World Scenarios**

Risk assessment is essential in the following scenarios:

-   **Mergers and Acquisitions (M&A):** An investor wants to know what "skeletons are in the closet" before purchasing a share in a company (Due Diligence).
-   **Entry of a New Partner:** When a new shareholder joins the company and the current status needs to be fixed.
-   **Attracting Financing:** A bank or international financial institution requests a legal risk report before issuing a loan.
-   **Change of Management:** When appointing a new director, so they know what legacy they are inheriting.
-   **Strategic Planning:** During budget planning at the beginning of the year, to account for potential legal costs.

**Georgian Legal Framework**

In the risk assessment process, lawyers rely on a wide range of legislation. The **Law on Entrepreneurs** defines corporate obligations. The **Civil Code of Georgia** regulates contractual and property relations. The **Tax Code** creates the framework for assessing fiscal risks. regarding intellectual property, the **Law on Copyright and Related Rights** and the **Law on Trademarks** are used. When assessing real estate risks, analyzing data from the Public Registry is crucial. This multifaceted approach ensures that no legal aspect is left unattended.

**Service Process**

The risk assessment procedure is standardized:

1.  **Information Collection:** Requesting documentation from the client (based on a checklist) and interviews with management.
2.  **Analysis:** The legal team studies the provided materials and checks public registers.
3.  **Risk Matrix:** A document is created where risks are arranged according to severity and probability of occurrence.
4.  **Report:** A detailed report is presented to the client with discovered problems and ways to solve them.
5.  **Presentation:** Discussing results with decision-makers.

**Why Use Legal.ge?**

Legal.ge is the ideal place to obtain comprehensive risk assessment services because it gathers lawyers of various profiles. Often, a full assessment requires the involvement of corporate, tax, and labor law specialists. Our platform allows you to assemble a multidisciplinary team or find a firm that will conduct a complete legal diagnosis of your business on a "one-stop-shop" principle.

### How often is assessment done?

Periodically and reactively — a separate assessment precedes a new product launch and follows material changes in client circumstances.

### Who must introduce the system?

The accountable person, proportional to the nature and volume of activity; the head enterprise also at group level.

### What is a high-risk jurisdiction?

A country or territory whose prevention system has serious deficiencies; the list is approved by the National Bank.

### What follows an unusual transaction?

The duty to study — establishing purpose and grounds and, where necessary, enhanced monitoring.