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In today’s fast-paced environment, organisations are increasingly having to face economic, political, social and legal challenges. This may lead to operational and reputational risks and impact their ability to comply with all regulations. This blog post outlines how the Corporate Legal Department can help address these challenges.
Legal Governance, Risk and Compliance (GRC) is a systematic and proactive approach to managing legal governance, risk and compliance within an organisation. Key components of Legal GRC Management by Design include risk assessment, policy development, training and communication, monitoring and reporting. The goal is to manage legal risk effectively and to ensure compliance with relevant laws and regulations, while also promoting a culture of ethical behaviour and accountability within the organisation.
Today, the Corporate Legal Department is not only focused on legal matters, actions and contracts. Legal organisations must now respond to incidents and breaches, and notify authorities in a timely and compliant manner. They must also respond to Data Subject Access requests, harmonise and monitor retention obligations, conduct eDiscovery processes, manage legal holds on data, and continuously monitor regulations and legislations and apply them to their business.
Organisations continue to face exponential growth in regulatory requirements and legal obligations, which are often conflicting and overlapping. Addressing all these obligations requires an integrated approach to legal governance, risk management and compliance. Legal GRC supports the achievement of the objectives of the legal department and the business at large, while also addressing legal uncertainty and its risks. It also helps the organisation to respond with integrity and due consideration of its legal and ethical obligations.
Nevertheless, many organisations fail to effectively coordinate Legal GRC principles throughout their various branches – IT, legal, internal audit and so on. This quickly leads to disconnected strategies, costly gaps and ultimately a failure to deliver on wide-ranging stakeholder demands. Thus implementing a succinct and comprehensive GRC framework is important for organisations because it helps them to to proactively manage their risk and compliance obligations.
The risk and compliance obligations that a GRC framework can address vary depending on the organisation’s industry, size, and operations. However, some common risk and compliance obligations that a GRC framework can address include:
To be effective and to address the aforementioned concerns, the creation of a comprehensive and tailored GRC framework is essential. This means including clear policies and procedures as well as effective risk management strategies and creating a culture of compliance throughout the organisation in a way that is specific to the identified needs of each organisation. Collaboration is very much required across all functions and branches.
The most relevant considerations for implementing a successful GRC programme and for the associated role of the corporate legal department include:
Today’s economic, legal, and regulatory challenges constantly intersect to create novel risks. Organisations must be prepared to break down traditional silos to improve their strengths and tap the collective expertise of all their resources. It is important for organisations to develop a clear strategy that enables risks to their department to be managed effectively.
Legal GRC is an approach – from a technological perspective – to becoming more efficient and productive and putting all these different tasks and activities into operation across the various departments.
This new paradigm presents the corporate legal department with fresh challenges, including the need to adapt to rapidly evolving technology, manage complex legal and regulatory landscapes, and effectively integrate legal perspectives into the organisation’s broader risk management framework.
Feel free to contact us if you’d like to talk about the specific challenges you face and how we might help you overcome them.