Plainly put, many attorneys dislike risk. Often, attorneys are quick to identify risk and advise total avoidance of risk, resulting in guidance that is so risk-adverse as to miss the commercial realities facing a project developer or engineering, procurement and construction (EPC) contractor.
And yet, the business world — especially in the EPC and renewable energy industry — is risk-laden. In a macroeconomic sense, risk drives markets: the more uncertain the outcome, the bigger potential return on investment. The optimistic entrepreneur sees high returns, and the pessimistic attorney sees high losses. When balanced, this is a positive dichotomy: it is in fact this very healthy tension that creates a productive relationship between the commercial and legal departments of any successful business.
This article first appeared in Association of Corporate Counsel November 23, 2015.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
