From Risk to Resolution: Crafting Legal Strategies That Work for You

What would you do?” It’s one of the most common questions clients ask their lawyer. While it may seem like a fair question, the answer might not be that helpful. Sure, a lawyer can tell you what they might do if they were in your shoes, but the better focus is on what you should do—based on your unique goals and risk tolerance.

Male lawyer and female client conferring at a desk. Lawyer taking notes while client calmly gestures with her hands.

This post explores the conversation around risk that should take place between you and your lawyer and the role both parties play in developing effective legal strategies. While we offer examples from the environmental and natural resource space, these principles apply to any attorney-client relationship.

Types of Risk: Financial, Litigation, Reputational, and More

When engaging a lawyer for matters involving transactions, disputes, or policy development, you need to weigh several types of risk:

  • Financial Risk – Will the resolution cost more than the reward? Can future costs be contained?
  • Litigation Risk – What are the chances of winning or losing, and how does that impact your position?
  • Reputational Risk – Could this action harm your company’s image or relationships with stakeholders?
  • Strategic Risk – What’s the long-term impact on your business or future negotiations?
  • Compliance Risk – Are there risks tied to potential regulatory violations?

Each type of risk must be carefully considered based on the specifics of the matter at hand.

A Lawyer’s Role: Understanding Your Risk Tolerance and Goals

A good lawyer won’t just tell you what to do—they’ll take the time to understand your risk tolerance and goals. This insight shapes the legal strategy. Here are a few examples:

  • Property Contamination: Suppose your property has been polluted by a neighbor’s activities, and you’re weighing whether to seek compensation through legal action. Your lawyer might ask, “How public do you want this matter to be?” or “What are your long-term plans for the property?” If your priority is quick resolution, a settlement may be the way to go. But if you're focused on accountability, litigation might be worth the risk.

  • Ecological Restoration Project: Say you're managing a complicated restoration project that requires state approvals and community cooperation. Your lawyer might ask, “How flexible are you with project changes if pushback arises?” or “What’s your tolerance for political risk if local officials delay their support?” Building a stakeholder engagement plan into your timeline may mitigate opposition but could also stretch out the project.

  • Conservation Easement: If you're looking to convey a conservation easement to a local land trust but want to reserve some development rights, your lawyer might ask, “How much flexibility do you need for future building projects?” or “Are you willing to risk challenges to the tax benefits of the easement?” Balancing conservation with development rights could affect both tax outcomes and long-term land use.

Once a strategic direction is set, such as deciding to litigate or negotiate, there are certain decisions—like choosing specific legal tactics—that the lawyer may have the prerogative to make within the bounds of the law and rules of professional responsibility. However, the overall direction must always align with your risk tolerance and objectives.

Why Experience Matters

When selecting a lawyer, experience matters. If you've been injured in a car accident, you’ll want a lawyer who understands the risks of trial versus settlement in such cases. But if you’re facing an environmental or property matter, you’ll need someone who’s familiar with the unique risks involved—whether it’s navigating regulatory challenges or handling community concerns. The more experience a lawyer has with your specific type of issue, the better they can help you manage risk.

Dialogue on Risk: Questions to Ask and Information to Share

A meaningful consultation with your lawyer is a two-way dialogue about risk. As the client, you should ask questions like, “What are the best, worst, and most likely scenarios?” or “What’s the potential financial impact?” At the same time, be prepared to answer your lawyer’s questions about your timeline, financial limits, and concerns beyond legal outcomes—like how a resolution might affect your relationships or business interests. The more your lawyer understands your risk tolerance and goals, the better they can shape their advice to fit your situation. This ongoing give-and-take is key to crafting a strategy that works for you.

Closing the Loop: Information is Power

Your lawyer can’t make decisions for you, but they can give you the tools to make informed choices based on your risk tolerance. At Watershed Legal Counsel, we develop and execute legal strategies that align with each client’s unique goals and risk profile. With experience across a range of environmental and natural resource matters, we’re here to help you weigh options and chart the best course forward.

Find out how we can help you.

--Jennifer Wazenski

Watershed Legal Counsel advises private clients and government instrumentalities in environmental and natural resources matters, conducts legal audits, and serves as outside general counsel for mission-driven enterprises in the environmental space. Founder Jennifer Wazenski is a Maryland attorney who has practiced environmental and natural resources law since 1991. She served as Principal Counsel to the Maryland Department of Natural Resources from 2013 through 2021, and, prior to that, Deputy Counsel to the Maryland Department of the Environment.

Disclaimer: Attorney advertising. The information provided at this site is for general purposes only. It is not, nor is it intended to be, legal advice.

© 2024 Watershed Legal Counsel. All rights reserved.

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