What is the difference between the two? Except from one applying to regulations and the other one to laws…
THanks!
Regulatory risk is the risk that laws or regulations will change.
Legal risk is the risk that existing laws won’t enforce contracts into which you have entered.
Legal/contract risk: Legal system fails to enforce a contract
Regulatory risk: Uncertainty of how a transaction will be regulated and with the potential for regulations to change. For example, regulatory regime may become harder, more restrictive or more costly.
Thanks!
You are welcome.
My pleasure.