A majority of corporate counsel recently expressed in a survey that regulatory uncertainty is a top regulation & enforcement concern. Corporate legal departments can resolve this issue in a number of ways.
With many businesses working internationally, uncertainty has grown, and it can be difficult to keep up with regulatory requirements in all the markets where a company does business. Regulatory concerns range from environmental impact in certain regions, trade issues across borders, and the protection of intellectual property in certain markets.
Government disclosure and oversight demands are also increasing. Specifically, corporate counsel are concerned about changing regulations across jurisdictions. These issues are made worse by tight budgets, lean staffing, and expensive technology.
Some experts recommend general counsel apply a Risk Management Framework to identify and manage regulatory risks. This Framework could, for example, examine risks across a business and also allow stakeholders to review the potential positive and negative consequences of a certain legal action.
Another option is for legal departments to improve governance, risk, and compliance abilities through projects in anti-corruption, business continuity, and third-party management. Regulatory uncertainty may also be resolved when a general counsel provides more information to corporate boards. A corporate counsel helps senior executives understand and prioritize regulatory compliance risks to properly allocate the business’s compliance resources.
Senior executives and board members alike seek guidance from general counsel regarding their legal and regulatory risk oversight responsibilities. Board committees, especially audit and risk committees, are often trying to determine the board’s new role in risk management. A general counsel can advise the board on risk management and also suggest the appropriate time for the board to consult its own counsel.
To learn more about how Legalinc’s compliance tools can help reduce regulatory uncertainty, contact us today.