How to tackle legal challenges in your business – a guide for owners, managers, and startup founders

Let’s be honest: law isn’t exactly the most exciting topic in business. But ignoring it? That’s a mistake you can’t afford. In today’s fast-changing business environment, having a solid grasp of the legal landscape is a must-have. This article is for business owners, entrepreneurs, and HR leaders alike. We’ll walk you through the legal areas you simply can’t afford to overlook.

Regulatory compliance – staying ahead of the rules

More than 60% of European companies say excessive regulation is the number one barrier to investment (BusinessEurope). And 55% of SMEs consider administrative burdens their biggest challenge.

Whether it’s tax law, environmental standards, or construction regulations – the rules change frequently. Not keeping up can mean penalties, loss of trust, and reputational damage.

TIP! Stay on top of changes through platforms like the EU Justice Portal or by subscribing to newsletters such as those featured on The Legal Practice.

GDPR compliance – every byte counts

Since 2018, GDPR has been a major source of stress for business owners in the EU. According to Harvard Business Review, companies with complex IT infrastructures face greater compliance challenges due to the high cost and complexity of updates. And the fines? They can climb into the millions.

What can you do? Start by assessing your internal processes:

Conduct a data processing audit

• Map the personal data you collect, its sources, processing methods, and third-party sharing.
• Identify the legal basis for each activity (e.g. consent, contract, legal obligation).
• Assess risks and implement safeguards to minimize them.

Update internal documentation and processes

• Ensure your privacy policies are up-to-date and reflect actual company practices.
• Apply “privacy by design” and “privacy by default” principles.
• Train employees on how to respond to data breaches or complaints.

Appoint a Data Protection Officer (DPO) if required

• A DPO is mandatory for organizations engaged in large-scale data processing or systematic monitoring.
• The DPO oversees compliance, trains staff, and serves as contact for supervisory authorities.

Protect data subject rights

• Make it easy for individuals to access, correct, delete, or restrict their data.
• Establish efficient procedures for handling data subject requests.

Prepare for data breaches

• Have a documented incident response plan (including investigation and reporting within 72 hours).
• Ensure contracts with data processors are GDPR-compliant.

GDPR compliance isn’t a one-time task. It requires ongoing evaluation and updates. By following the steps above, you’ll reduce legal risk and build trust with your customers and partners.

TIP! Want to deepen your legal knowledge? Explore the LL.M. in Business and Law at EDU Effective.

When ethics falter

Corruption and ethical lapses continue to challenge businesses across Europe. According to Transparency International, several EU countries still face moderate to high levels of perceived corruption, which can affect not only local operations but also international partnerships and brand reputation.

Regardless of your location, a lack of ethical standards in your organization can lead to mistrust, regulatory scrutiny, and damaged credibility in the market.

One in seven corporations engaged in unethical behavior in 2017. That number continues to grow.

TIP! Establish an internal code of ethics and train your team regularly. Learn more in our article: “Solving Ethical Dilemmas in Business.”

AI and law – regulation is coming

Artificial Intelligence is a powerful tool – but also a legal puzzle. The EU is preparing the AI Act, which classifies systems by risk level. Why does it matter? Here’s one example:

Generative AI dramatically lowers the barrier for legal action. Competitors or customers can now file hundreds of legal complaints with a few clicks. According to HBR, AI generated 120,000 comments on crypto regulation – overwhelming the system and affecting final legislation.

Firms must prepare for this kind of “legal DDoS attack” the same way they prepare for cybersecurity threats.

Ask yourself:

• Do your AI tools collect personal data?
• Can you trace where training data came from?
• Do you have a risk management process in place?

TIP! GDPR applies to data used by AI, too. Learn how to handle this in our MBA – Mastery in AI program.

Your know-how deserves protection

Patents, trademarks, copyright – sounds like big tech territory? Think again. According to the EUIPO, 42% of European SMEs have no IP strategy. Yet, intellectual property often makes up the core of a company’s value.

Forbes confirms this: protecting IP can make the difference between a business’s success and failure.

Take stock of your IP assets:

• Do you have clear contracts with freelancers and vendors?
• Are your logo and domain trademarked?
• Do you know what can be protected as a design or invention?

Start with the basics at EUIPO. 

The employment law minefield

From working hours to remote work and health & safety – Czech labor law is complex. Every misstep can lead to inspections or lawsuits.

TIP! Train yourself and your HR team. Our MBA in HR Management teaches how to handle real-life HR and legal issues.

Pay attention to risk management

According to HBR, smaller companies are more vulnerable – they often lack legal departments or even a single lawyer. But a basic legal overview, crisis plan, and risk awareness are no longer “nice to have”. They’re must-haves.

Build your legal toolkit:

• Crisis response scenarios
• A list of external contacts (lawyer, compliance, IT)
• Regular risk audits

Start with resources from the Institute of Risk Management.

Where to Learn More About Business Law? Study LL.M. at EDU Effective

Law isn’t just about risk. It’s a tool that helps you protect, grow, and lead with confidence. Prevention beats reaction – and the right education makes all the difference.

That’s why we’ve completely updated our LL.M. program at EDU Effective. Still 10 modules, but now fully redesigned to combine business law, data protection, negotiation, ethics, and AI. Topics now include the EU AI Act, IP protection in the metaverse, AI-era leadership, copyright in the digital space, and more.

You can study 100% online with microlearning – just 15 minutes a day. Practical, accessible, and aligned with today’s business challenges.

Have questions about studying at EDU Effective? Contact us or visit our FAQ page.

Sources:

https://hbr.org/2024/10/gen-ai-makes-legal-action-cheap-and-companies-need-to-prepare
https://e-justice.europa.eu/
https://www.euipo.europa.eu/
https://www.theirm.org/
https://hbr.org/2023/02/how-gdpr-changed-european-companies-tech-stacks
https://www.forbes.com/councils/forbesbusinesscouncil/2022/07/14/intellectual-property-for-small-businesses-what-every-smb-needs-to-know/
https://thelegalpractice.com/legal-career/best-legal-newsletters/