This article examines modern approaches to minimizing legal risks in the negotiation and implementation of international investment agreements, addressing both legal and socio-environmental aspects. Based on an analysis of recent research, key factors contributing to safer and more balanced interactions between investors and host states are identified. Specifically, detailed descriptions of contractual obligations, the introduction of clear sanction and compensation mechanisms, and flexible dispute resolution procedures significantly reduce the likelihood of conflicts. Additionally, the role of proactive contract design is emphasized, which involves a simplified and transparent structure to engage all stakeholders, including local communities. The article also highlights the growing significance of digital trends, from the recognition of virtual assets and cross-border data flows to the adaptation of agreement provisions reflecting the rapidly evolving digital economy. The findings conclude that comprehensive risk management measures not only enhance trust in the international investment environment but also promote more sustainable development while preserving regulatory sovereignty and protecting the key rights and interests of all parties involved. This article is of interest to specialists in international law, legal professionals, economists, government officials, and corporate consultants involved in the development, negotiation, and analysis of investment agreements.

international investment agreements, legal risks, sanction mechanisms, environmental standards, digital economy, proactive design, dispute resolution, regulatory sovereignty

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