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   Legal Risk
   















 

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Legal Risk

The most important legal risks in financial risk management are legal capacity or ultra vires risk (the risk that a counterparty is not legally capable of making a binding agreement) and regulatory risk (the risk that a statute or a policy of a regulatory body conflicts with the intended transaction). See also Hammersmith and Fulham, London Borough of, Ultra Vires Act.

For a regulatory perspective of legal risk, please see "Key Risk Concepts: Other Risks."

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