A-Z Legal Glossary to Understand Key Concepts Without Losing Sight of the Business.
This glossary brings together legal and compliance terms explained with clarity, practical utility, and a business focus, to help management, partners, and teams better understand the concepts impacting their operations.
What you will find here
Clear definitions of legal, corporate, compliance, and dispute resolution concepts, explained in language that is closer to business decision-making than technical formalism.
How to use this glossary
You can navigate through the lyrics and expand each term to see its definition, practical use, and why it matters within a company. Later, some concepts may become independent entries.
Browse by letter. Grayed-out letters may be incorporated later as the glossary grows.
A
3 terms
Amparo
Means of constitutional control to protect rights against acts of authority.
Amparo is a legal mechanism that can be used when an act by an authority affects rights recognized by the Constitution or applicable laws.
In a business context, it is often relevant when a decision, administrative act, or action by an authority generates an impact that the company considers inappropriate or unconstitutional.
Because it can be a means of protection against acts of authority that affect the operation, assets or rights of the company.
Arbitration
Mechanism.
Arbitration is a way of resolving disputes outside of state courts, through arbitrators appointed according to the agreement of the parties or applicable institutional rules.
It can be especially useful in complex commercial relationships where a specialized procedure is sought, confidential or more flexible than ordinary litigation.
Because it can offer a different route to resolve contractual or commercial disputes with greater strategic control.
Compliance audit
Review to identify risks, gaps, controls, and alignment level with applicable obligations.
It is a structured review that helps to identify where gaps exist, what controls are working, what is not documented and what level of compliance the company shows against its obligations and risks, what needs to be documented and what level of compliance the company shows against its obligations and risks.
Because it allows you to move from general perceptions to a clearer, more actionable diagnosis.
C
4 terms
Compliance
Prevention, control, training, evidence and response structure to reduce legal and reputational exposure.
Compliance is the framework through which a company seeks to meet its obligations, reduce risks, and demonstrate that it has criteria, controls, and evidence to act in an orderly manner.
In practical terms, it's not just about “complying with the law,” but about building an internal capacity for prevention, monitoring, and response that helps protect the business's operations and reputation.
Because a company with criteria, responsibility, controls and evidence can better prevent and respond to contingencies.
Confidentiality
Duty to safeguard information that must not be disclosed or used outside the authorized framework.
Confidentiality involves protecting sensitive, strategic, reserved, or personal information, and limiting its access, use, and disclosure to what is strictly authorized.
Because the leakage or misuse of information can generate legal, reputational, and commercial risks.
Board of Directors
Collegiate body in charge of guiding, supervising and, if necessary, deciding on relevant aspects of the company.
It is a body that helps to organize the supervision and strategic decision making within the company, especially when there is growth, corporate structure or need for institutional control.
Because it helps to formalize decisions, define powers, and ensure the company's continuity.
Contingency
Risk or situation that can generate legal, operational, economic, or reputational impact.
A contingency is a current or potential risk situation that can affect the company and requires attention, prevention, correction, or containment.
Because not every contingency explodes immediately; many can be better managed if identified early.
D
1 term
Due diligence
Review and validation process to better understand a counterparty, transaction, or relevant risk.
Due diligence is a prior or periodic review that helps evaluate relevant information about third parties, operations, alliances, risks or background information before making important decisions.
Because it helps reduce decisions based on incomplete information or misjudged risks.
G
2 terms
Risk management
Process for identifying, assessing, prioritizing and addressing risks that may affect the organization.
Risk management seeks to recognize which threats can affect the company, how sensitive they are, and what measures should be adopted to prevent, mitigate, or manage them.
Because not all risks deserve the same attention, and prioritizing well changes response capability.
Corporate Governance
Set of rules and practices that govern decision-making, oversight, and business continuity.
Corporate governance means giving order to the way in which the company decides, supervises, assigns powers and protects its continuity. and protects its continuity. It is not exclusive to large corporations; it is also useful in medium-sized or family-owned companies.
Because it reduces ambiguity, helps formalize relevant decisions, and better protects the business legacy.
M
1 term
Mediation
Dispute resolution mechanism in which parties seek to build a solution with the support of an impartial third party.
In mediation, the parties try to find a solution with the intervention of a neutral third party who facilitates communication and understanding, without imposing a decision. who facilitates communication and understanding, without imposing a decision.
Because it can save wear and tear, time, and cost when there is real room to build a negotiated exit.
N
1 term
Strategic negotiation
Dialogue process oriented to protect position, reduce attrition and seek a convenient exit.
Strategic negotiation is not just about “giving in” or “fixing”, but about building a clear position, understanding objectives, assessing risks and deciding what can be agreed without unduly compromising the company.
Because in many conflicts, the best decision is not to litigate immediately, but to negotiate better.
P
1 term
Domestic policy
Document or guideline that directs conduct, decisions, and criteria within the company.
An internal policy helps translate obligations and expectations into understandable rules for the organization. Its value depends not only on its existence but also on it being understandable, applicable, and enforceable.
Because it allows for aligning action criteria and leaving evidence of how the company expects to act.
R
1 term
Reputational risk
Possibility of a situation affecting the company's confidence, perception or credibility.
It is the risk that decisions, omissions, incidents, or conflicts will damage how customers, allies, authorities, partners, or the public perceive the organization.
Because reputational damage can have operational and commercial consequences beyond the original legal issue.
S
2 terms
Internal control system
Set of measures, reviews, and responsibilities to order and supervise operations.
The internal control system seeks to ensure that certain activities, decisions, and records follow clear criteria, have minimum validations, and reduce the margin for error, omission, or abuse.
Because it allows a transition from informal trust to more robust and defensible oversight.
Partners
Individuals or entities involved in the ownership and, as applicable, in relevant company decisions.
Partners are holders of equity in a company and, according to the applicable corporate framework, may have rights and obligations regarding voting, decisions, dividends, transfer of shares, or continuity.
Because a lack of clear rules between partners is often a major source of business conflict.
T
2 terms
Third related
Supplier, partner, contractor, or counterparty whose performance can impact the company.
A related third party is any external person or entity whose actions, failures, or risks can affect the company from a legal, operational, or reputational perspective.
Because many contingencies arise outside the company, but end up affecting it directly.
Traceability
Ability to trace a decision, action, document or control within the organization.
Traceability allows us to identify what was done, who did it, when it happened, and what evidence exists. It is especially useful in compliance, internal audits, and defense against disputes.
Because a company without traceability usually finds it more difficult to demonstrate control and good performance.
Understanding the concept is useful; applying it correctly is what protects.
If your company needs to translate a legal or compliance term into a concrete prevention, structure or defense decision, BLL can help you define a clear structure or defense, BLL can help you define a clear path.