News & Events
The Offices of Locke Lord Bissell & Liddell
111 South Wacker Drive
Locke Lord Bissell & Liddell LLP is hosting a complimentary seminar on Wednesday, May 20, 2009.
Registration and Continental Breakfast: 7:30 - 8:15 a.m.
Program: 8:15 - 11: 30 a.m.
Lunch (optional): 11:30 a.m.
The program will be registered for Illinois Minimum Continuing Legal Education (MCLE) credit.
Insolvency risk has rarely been greater than it will be for at least the remainder of 2009. As a result, even companies that are well run and adequately capitalized will be exposed to the risk of being adversely impacted or brought down by the myriad companies with which they do business, including their vendors, insurers, distributors, lenders and customers. This risk of becoming entangled with the problems encountered by these third parties can bring an otherwise good company down.
Entanglement risk can be, and should be, managed. In today’s environment, directors and officers are well advised to exercise a high standard of care to evaluate how best to identify and manage this entanglement risk and thereby mitigate the impact on their company.
During this morning workshop, we will discuss several areas of this risk and we will offer practical suggestions for not only assessing the entanglement risk, but also mitigating it. The discussions will raise a number of issues that may apply to your company, and will also provide a framework for assessing and mitigating some of the more significant entanglement risks.
We also will focus on officer and director duties in this area, and the responsibilities that they have for managing their company’s third-party risk profile. The discussions will be relevant to public and privately-held companies alike.
We will provide specific, tangible tips to assess and mitigate entanglement risk in at least the following areas:
- A general framework for assessing your concentration of risk with customers and suppliers
- Tangible steps that should be taken by directors and officers to meet their fiduciary duties and to reduce entanglement risk
- Credit risk of your key customers and why you should care about the credit risk of your suppliers
- Performance risk of your significant IT/outsourcing suppliers
- Insolvency risk of your and your suppliers’ insurers, including your D&O carriers
- Special D&O risks in market downturns
- Techniques for early intervention in possible disputes as a way to reduce risk and cost