legal-risk-assessment-mandatory-engagement

# Mandatory Engagement (+3)

## Mandatory Engagement

- **Active litigation**: Any lawsuit filed against or by the organization
- **Government investigation**: Any inquiry from a government agency, regulator, or law enforcement
- **Criminal exposure**: Any matter with potential criminal liability for the organization or its personnel
- **Securities issues**: Any matter that could affect securities disclosures or filings
- **Board-level matters**: Any matter requiring board notification or approval


## Strongly Recommended Engagement

- **Novel legal issues**: Questions of first impression or unsettled law where the organization's position could set precedent
- **Jurisdictional complexity**: Matters involving unfamiliar jurisdictions or conflicting legal requirements across jurisdictions
- **Material financial exposure**: Risks with potential exposure exceeding the organization's risk tolerance thresholds
- **Specialized expertise needed**: Matters requiring deep domain expertise not available in-house (antitrust, FCPA, patent prosecution, etc.)
- **Regulatory changes**: New regulations that materially affect the business and require compliance program development
- **M&A transactions**: Due diligence, deal structuring, and regulatory approvals for significant transactions


## Consider Engagement

- **Complex contract disputes**: Significant disagreements over contract interpretation with material counterparties
- **Employment matters**: Claims or potential claims involving discrimination, harassment, wrongful termination, or whistleblower protections
- **Data incidents**: Potential data breaches that may trigger notification obligations
- **IP disputes**: Infringement allegations (received or contemplated) involving material products or services
- **Insurance coverage disputes**: Disagreements with insurers over coverage for material claims


## Selecting Outside Counsel


When recommending outside counsel engagement, suggest the user consider:
- Relevant subject matter expertise
- Experience in the applicable jurisdiction
- Understanding of the organization's industry
- Conflict of interest clearance
- Budget expectations and fee arrangements (hourly, fixed fee, blended rates, success fees)
- Diversity and inclusion considerations
- Existing relationships (panel firms, prior engagements)