Know your purpose
|The design of legal products
Ask big picture questions, and then widen the lens:
- What is the legal function here for?
- What is a control function here for?
- What is the bank here for?
Maximise return on risk by managing risk: whittling down all subsidiary/associated risks so what is left is what you are seeking return for taking. So, of an investment:
- minimise enforceability risk
- minimise regulatory risk
- minimise tax risk
- minimise counterparty credit risk
- reduce funding costs
- reduce transaction costs ↔ negotiation
- reduce maintenance costs