Corporate Governance, Legal Risk Management, And Your Company

The terms corporate governance and legal risk are much bandied about but hold different meanings for different people. Ally Law member firm Russell Kennedy of Australia notes that typical interpretations include:

• Minimising Liability – particularly steps to reduce liability and exposure.
• Accountability – improving accountability and transparency within organizations, particularly decision making.
• Risk management – dealing with legal risk, financial risk and business risk within an enterprise.
• Compliance – meeting statutory, regulatory and other requirements.

In the usual context legal risk management relates to how boards of directors can be satisfied that risks and liabilities within an enterprise are being addressed. Boards, with personal liability as directors of the company, need to be satisfied that any issues which may give rise to personal liability have been addressed within the enterprise.

A “legal risk audit” can help your business identify those areas where systems may be lacking or inadequate. A legal risk audit would concentrate on those areas which can expose an organization to the most liability as well as identify whether the organization, as a whole, has appropriate systems and processes in place to deal with these key governance issues. For instance, does your company have a framework for systematic identification and management of enterprise risk? Does your company have appropriate policies and procedures to manage the the plethora of issues which a modern enterprise must cover including OH&S, EO, privacy, care and safety, statutory compliance?

Your Ally Law member firm can develop a compliance checklist for your enterprise which assists in identification of risk, identification of inadequacies within the organization, and provides assurance to management and the board that statutory and regulatory compliance has occurred. Ally Law member firms, located in and serving over 60 countries, have corporate law departments with attorneys skilled and experienced in corporate governance and risk assessments and will be happy to meet with you and develop a compliance program tailored to your company’s particular needs. For more information about Ally Law member firm services and outstanding lawyers, contact us at team@ally-law.com.

Original article by Michael Gorton of Ally Law member Russell Kennedy.