Our Methodology

How we calculate your legal rating.

Our rating methodology combines structured self-assessment, public data analysis, and AI-driven evaluation to produce an objective, reproducible legal preparedness score.

Rating Scale

What each rating means.

AAA
Exceptional Legal PreparednessScore: 93–100
Minimal Risk

The company demonstrates outstanding legal infrastructure across all domains. Legal risk is minimal and proactively managed.

AA
Very Strong Legal PreparednessScore: 85–92
Very Low Risk

Strong legal foundations with only minor gaps. The company is well-protected and demonstrates proactive legal management.

A
Strong Legal PreparednessScore: 77–84
Low Risk

Good legal infrastructure with some areas for improvement. Legal risks are generally well-managed.

BBB
Adequate Legal PreparednessScore: 68–76
Moderate Risk

Adequate legal protections in place but with notable gaps that should be addressed. Moderate exposure to legal risk.

BB
Below Average Legal PreparednessScore: 58–67
Elevated Risk

Some legal protections exist but significant vulnerabilities are present. Legal risk is elevated and requires attention.

B
Weak Legal PreparednessScore: 48–57
High Risk

Weak legal infrastructure with multiple significant gaps. The company faces substantial legal risk exposure.

CCC
Poor Legal PreparednessScore: 38–47
Very High Risk

Poor legal foundations with critical vulnerabilities. Immediate remediation is strongly recommended.

CC
Very Poor Legal PreparednessScore: 25–37
Severe Risk

Very poor legal infrastructure. The company is highly exposed to legal liability and regulatory action.

C
Critical Legal RiskScore: 0–24
Critical Risk

Critical legal deficiencies across most or all domains. Immediate comprehensive legal remediation is required.

Scoring Weights

How categories are weighted.

Contracts & Agreements20%
Regulatory Compliance20%
Intellectual Property15%
Employment & Labor15%
Data Privacy & Security20%
Corporate Governance10%

The Process

How your rating is calculated.

1

Data Collection

We collect data from two sources: your 40-question self-assessment and automated scraping of your public website (privacy policy, terms of service, social presence, etc.).

2

Category Scoring

Each of the six legal domains is scored 0–100 based on your answers. Questions are weighted by legal significance — critical issues like active litigation carry more weight than minor gaps.

3

AI Analysis

Our AI engine cross-references your answers with scraped public data to identify inconsistencies, verify claims, and surface risks that may not be apparent from the questionnaire alone.

4

Weighted Aggregation

Category scores are combined using our proprietary weighting model (shown above) to produce an overall score from 0–100, which maps directly to the AAA–C rating scale.

5

Peer Benchmarking

Your score is contextualized against industry benchmarks and company size norms to ensure the rating reflects relative legal preparedness, not just absolute compliance.

6

Rating Assignment

The final rating is assigned based on your overall score. Ratings are accompanied by a detailed breakdown, key strengths, critical risks, and — for paid users — a specific action plan.

Important Disclaimer

Business Legal Ratings are provided for informational and risk-awareness purposes only. They do not constitute legal advice, and should not be relied upon as a substitute for consultation with a licensed attorney. Ratings reflect the information provided at the time of assessment and may not capture all relevant legal factors. Business Legal Rating is not a law firm and does not establish an attorney-client relationship.

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