LegalTech as a Tool for Risk Management in Family Businesses: Opportunities and Limitations

The article examines the role of LegalTech technologies in managing risks within family businesses. The purpose of the study is to identify the potential of LegalTech to minimize legal, financial, and organizational risks typical for family enterprises. The authors use a comparative analysis of traditional and digital approaches to risk management, as well as systematization and analysis of scientific literature, to identify key types of risks and propose effective LegalTech solutions. The results of the study show that implementing LegalTech improves process transparency, automates routine tasks, optimizes contract management, and enhances risk control. Special attention is given to the specifics of family businesses, including strengths such as continuity and high loyalty, as well as limitations like interpersonal conflicts and a lack of professional skills. The risks of over-reliance on technologies and the challenges of integrating them into family enterprises are highlighted. The practical significance of the article lies in providing recommendations for effectively using LegalTech to enhance the resilience and competitiveness of family businesses in a digitalized environment. © 2025 Elsevier B.V., All rights reserved.