Depending on the nature of your business, legal costs could come up to quite a high percentage of your annual budget, especially if the industry that you are in is highly regulated.
In an industry that is sensitive to regulations (domestic and international) such as financial institutions, the organisation will need to build teams of people managing risks and comply with all the regulations affecting them.
When there is a legal dispute or legal inquiry from the regulators, you will a need a team of people to deal with, and manage this, and perhaps hire external lawyers and experts.
If the costs are not managed properly, it will go up infinitely. Having a soft budget could be a good thing, because at least there is a benchmark. However, limiting money spent on this area may be a mistake. You may end up hiring lawyers, experts and staff who are not the best fit to manage the issues at hand.
For bigger organisations, they may afford a bigger budget. But smaller businesses, they may not have the funding required to beef up their risk management and legal department.
BIK Consulting offers legal risk and support services on a retainer basis, that includes having a team of experts to consult on should any risks and business issues that need to be dealt with. For small and medium business, this would be ideal as they will not have to hire a team of full time staff to provide such risk support.
In addition, should your organisation require legal funding for any dispute, BIK Consulting assist organisations in obtaining legal funding for legal fees and expenses on a non-recourse basis (i.e if you lose the case, there is no requirement to repay the funding provided).
Of course, in order to obtain non-recourse legal funding, you must have a case that is highly likely to be won. Please use the Court Case Prediction Tool to find out if you have a high chance of success.