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.