What Does “Legal Risk” Mean?

Defining “legal risk” is tricky. Risk management professionals disagree as to whether the
risk that a company would breach anti-corruption laws constitutes a legal risk: some say
it does, because a law would be breached, while other say it does not, because the
breach as such is not a matter of law but a matter of behavior (so it should belong to the
category of governance risk, or operational risk, or whatever).