57
Section 4 – The role of General Counsel and the Board
% W H O A G R E E O R D I S A G R E E W I T H S T A T E M E N T S
R E S P O N S I B I L I T Y F O R I D E N T I F Y I N G A N D MA NAG I N G R I S K General Counsel see the legal department as taking primary responsibility for both identifying and managing risk within the organisation, whilst recognising that risk, compliance and the Board also having a crucial role. Board Directors perceive a more prominent role for themselves and for the risk function. These gaps in perception between the Board and General Counsel are not large and their views have become more aligned over the history of the study. Nevertheless, in a global business environment where alignment and integration between business functions is an increasingly important component of delivering all business objectives, a discussion to ensure departmental clarity of responsibilities in relation to risk management is essential.
The majority of General Counsel and Board Directors agree that legal, risk, compliance and audit teams co-operate effectively to manage risk, but a quarter of them feel that roles and responsibilities could be more clearly defined. There is agreement that General Counsel and Board Director roles are increasingly involved with managing rather than preventing risk. This, along with many other findings in this year’s report, suggests that Boards and General Counsel have strong alignment around purpose and priorities. The required improvements are more focused on achieving clarity of communication and operational efficiencies than achieving a shared vision. One aspect of communication that is identified as an area for attention is formal reporting on legal risks to the board. Around half of all respondents feel this needs to be improved. Boards are under increasing pressure to show flexibility and innovation in how they manage reporting and other information flows within the business and are increasingly trialling new methods of executive reporting as well as implementing initiatives such as the use of advisory panels and Board portals. Harnessing technology and creative management techniques will be an important driver of improved reporting,
THE L EGAL T EAM I S R E S PONS I B L E FOR HOR I ZON S CANN I NG AND RA I S I NG THOUGHT L EADE R SH I P I S SUE S I F THEY AR E NOT ON THE AGENDA . OUR ROL E I S TO L I S T EN TO WHAT THE BUS I NE S S I S SAY I NG , ANALYS I NG THAT AND P ROV I D I NG THEM WI TH THE I NFORMAT I ON THEY NE ED.
Disagree
Agree
60 % 53 %
14 % 6%
The legal, risk & compliance and internal audit teams work together to manage regulatory risk
51 % 53 %
18 % 18 %
My role increasingly has an emphasis on risk management rather than risk prevention
General Counsel, Financial Services
QUAL I TY US ED TO B E SOME TH I NG YOU D I D B ECAUS E THE CUS TOME R WANT ED I T, I T I S NOW P ROBAB LY OUR MOS T E F F ECT I VE R I S K MANAGEMENT TOOL . I WORK C LOS E LY WI TH OUR QUAL I TY MANAGE R
49 % 59 %
25 % 24 %
Key risk management roles and responsibilities are clearly defined and delineated within our organisation
cross-function communication and departmental integration.
41 % 47 %
38 % 29 %
Formal reporting to the Board on legal risks needs to be improved
I N I DENT I F Y I NG WHE R E WE HAVE WEAKNE S S E S .
General Counsel, Financial Services
General Counsel Board
Made with FlippingBook - Online catalogs