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KEY TAKEAWAYS
Defying economic downturn through action
time and resources in good economic times to plan contingencies for the next downturn. Having an action plan developed in advance to perform functions such as trimming costs or promoting growth, helps companies more seamlessly address poor economic times. Q2 In times of economic distress and change, how can professional services firms assist in maximising value while minimising disruptions? Professional services firms assist clients in developing policies to minimise the impact of a changing market or business landscape. For example, a law firm can work with a business team to ensure staffing adjustments do not violate applicable laws. The time spent working with an attorney prior to implementing staffing adjustments helps to minimise the risk of a lawsuit. Failing to plan ahead could result in litigation costs and expenses, such as attorney’s fees and expert costs, in addition to damages. Additionally, dispute resolution proceedings are a distraction and take team members away from their everyday job duties. When disputes arise, law firms work with clients to cut through emotions
Proactive risk management: Businesses can navigate regulatory and economic uncertainties
so they can understand a reasonable solution to the situation. Doing so can save money and time. Law firms counsel clients through risk of exposure, likely outcomes, and expenses. This practice often results in an early settlement outcome that resolves a dispute. A law firm may also work to structure a company’s contracts to include favorable dispute resolution procedures to minimise uncertainty. For example, a well-crafted dispute resolution provision can help minimise costs by specifying that the dispute resolution proceeding takes place in the same city as the business’ headquarters. Q3 How can clients approach the risk of uncertainty and turn it into opportunity? Uncertainty often carries a negative stigma. However, clients can choose to view the positives when it comes to the risk of uncertainty. Companies facing uncertainty may opt to develop contingency plans that are easily adjustable to fit a variety of circumstances. For example, a disaster relief plan for an earthquake that destroys office space, mandating remote work, could be adjusted to respond to a global pandemic. The COVID-19 Pandemic demonstrated that companies that were able to adapt their business models survived, while those that did not, failed. Restaurants that adjusted to outdoor seating and takeout ordering were better situated to outlast the Pandemic. Even post-Pandemic, some restaurants have maintained their takeout ordering to maximise a new revenue source. Entering 2025, one of the largest areas with uncertainty is the use of generative Artificial Intelligence. Businesses must navigate the appropriate use of this powerful new tool. Companies dealing in sensitive client data must balance privacy with efficiency. Those at the forefront of responsibly adopting AI into their business models will be better situated to grow and thrive in this changing world.
by taking early action, such as staying informed about upcoming regulatory changes and developing contingency plans for economic downturns. This preparation minimises last-minute disruptions and ensures compliance with evolving rules.
Professional services support: Law firms and accounting firms assist businesses by
minimising legal risks, such as ensuring staffing adjustments comply with laws or structuring contracts to include favorable dispute resolution clauses. This helps reduce potential legal costs and disruptions during economic or market changes.
Nicole Liguori Micklich Partner Samuel Agostini Associate Urso, Liguori & Micklich, P.C.
Turning uncertainty into opportunity: Companies can embrace uncertainty by
creating adaptable contingency plans. For example, businesses that adapted to the COVID-19 pandemic, like restaurants offering takeout, found new revenue streams. Similarly, responsibly adopting AI can offer a competitive edge in the evolving market.
Nicole Liguori Micklich is the managing partner at Urso, Liguori & Micklich, P.C. She has earned a reputation for successfully representing franchisees and development agents at every step of the franchise relationship and in litigation with franchisors. Ms. Micklich enjoys extensive involvement in the American Bar Association Forum on Franchising, where she is a member of the Governing Committee. Ms. Micklich co-chaired the Forum’s 46th Annual Meeting, in 2023, in Dallas, Texas.
Q1 How can proactive risk management strategies help businesses navigate regulatory and economic uncertainties? The current rise of artificial intelligence, political changes, and price uncertainty creates a unique opportunity for businesses to strengthen their risk management procedures. Early action is key to reducing the impacts of regulatory and economic uncertainty. Proactive risk management strategies help companies prepare for changing times. For example, regulatory changes in the U.S. come with advanced notice. Agencies publish proposed rules and take comments before finalising a rule. Professional services firms can inform clients of these possible changes and assist them in developing plans prior to implementation. One recent example in the United States is the Corporate Transparency Act (the “CTA”). The CTA created obligations for many companies to report the identity of their “beneficial owners” and others to the federal government. The CTA is currently being challenged pursuant to pending
“A well- crafted dispute resolution provision can help minimise costs.”
+1 401 596 7751 nicolemicklich@ulmlawfirm.com irglobal.com/advisor/nicole-liguori-micklich
Sam Agostini is an associate at Urso, Liguori & Micklich, P.C. His areas of practice include franchise law and other forms of commercial litigation. Mr. Agostini is actively involved in the American Bar Association’s Forum on Franchising, where he is a member of the Solo & Small Firm Committee. He is also a recipient of the Forum on Franchising’s Edward (Jack) Wood Dunham Rising Scholar Award.
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+1 401 596 7751 samuelagostini@ulmlawfirm.com irglobal.com/advisor/samuel-l-agostini
litigation. Law firms and accounting firms have kept clients updated on the status of this new requirement. While the status of the requirement is in flux, firms have assisted business clients in preparing plans to ensure compliance, should the courts uphold this new filing requirement. A failure to pay attention to this changing landscape could lead
to a business missing an important deadline. It is critical that business decision makers act promptly to avoid implementing a new rule at the last minute. In the economic context, proactively developing action plans in the face of an economic downturn creates efficiency. Companies should spend the
Urso, Liguori & Micklich, P.C. - U | L | M provides a full spectrum of representation and advocacy for franchisees. Nicole Liguori Micklich has earned a reputation for successfully representing franchisees and development agents at every step of their relationship with franchisors, and, when necessary, in litigation. (new line) At U | L | M we pride ourselves on building long-term relationships with our clients as they secure, develop, and protect profitable businesses.
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