Legal Challenges in a New Era
Today’s global business environment presents a broad spectrum of economic, political, social, legal and regulatory changes, which continually increase strategic and tactical complexity, and create commensurate pressures on business performance and exponential growth of often conflicting and overlapping legal and business requirements alongside global operations. The enterprise must reliably achieve business objectives while addressing uncertainty and act with integrity – all the while remaining within mandatory legal requirements. It must also manage and maintain legal risk within the limits that the organization has established.
Legal risks include:
- Regulatory risk: The risk associated with myriad laws, rules and regulations. It includes common regulatory risks associated with labor laws, information privacy and anticorruption, as well as risks specific to industries such as banking, pharmaceuticals, energy and utilities and health care.
- Entity management and corporate filings risk: The risk associated with keeping the entity in good standing with governing agencies, and filing information with regulators and government agencies.
- Litigation risk: The risk associated with ongoing, imminent and potential litigation.
- Contract risk: The risk involved in vetting contracts and monitoring compliance with contract requirements and provisions.
- Transaction risk: The risk associated with mergers and acquisitions, including the legal risks of the acquired organization.
- Intellectual property (IP) risk: The risk involved with copyrights, trademarks and patent infringements, as well as leakage and/or loss of confidential corporate information.
Most organizations try to address and effectively manage legal risks, IP protection, contracts, business requirements and compliance obligations. But both internal and external stakeholder forces and events have caused the organization to increase legal risk monitoring and reporting, particularly with regard to changing laws and regulations.
The Role of the Legal Department in GRC
In many organizations, the significance of the legal department is growing. Today, the department guides the enterprise beyond putting out fires in legal matters. It is being tasked to take on a proactive role in legal risk management and preventive law, while functioning as a critical pillar in an organization’s risk management strategy. This requires that legal be
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