Views on legal risk depend on the financial resources of the company to run them

Joseph Mazur, What’s Luck Got to Do with It? – The history, mathematics, and psychology of the gambler’s illusion (Princeton 2010) at 92, “Economists have long sought a meaninghful measure of risk, which should depend on a person’s specific financial situation.” Similarly, the finances of a company affect how legal risks are perceived and handled. The larger the company, the more risks it can take and still remain confident of continuing on if the situation worsens or blows up. This may be another reason why greater size is associated with lower total legal spending – the resources to absorb larger risks and therefore not to invest as much in their detection and amelioration.