Manager, legal | BHP
Juan Carlos Urquidi H.
Manager, legal | BHP
How do you approach managing legal aspects during periods of instability or crises, and how does your legal strategy align with the broader business strategy to ensure the organisation’s resilience?
In my view, successfully managing crisis situations is paramount for mining companies. Proactive risk management, strategic approach to crisis and, mostly, dispute prevention should be internalised to operate and progress. Best efforts on early identification and minimisation of all issues that could trigger a crisis are critical tools to allow operating and growing sustainably in the long term, in harmony with the local communities and the environment.
In my role, I work with the management of BHP’s material disputes and litigation and response to regulatory investigations and enforcement actions in Chile. In this role, when crisis arise, collaborating with cross-functional teams is highly important. This, followed by identifying potential legal risks associated with highly complex and technical issues. A proactive approach allows for early intervention and taking active measures, mitigating impacts, and, of course, preventing disputes. Really understanding the business and the way we operate is fundamental. A clear knowledge of our strengths and weaknesses will make the team both more efficient and effective in identifying risks but also opportunities to learn and grow.
My approach prioritises proactive solutions. Even in crisis-scenarios, seeking how to be one step ahead of flow-on consequences is critical to make the best decisions. This translates in essence: firstly, ensuring security; secondly, enabling the operation to continue safely; and, finally, preventing disputes. This holistic approach makes the legal team a key partner for the business, enabling not only to deal with crisis-situations successfully, but to emerge stronger and more prepared for future contingencies. Ultimately, having the proper tools to deal with crisis effectively allows addressing critical challenges at a micro-level, but, most importantly, also enables the business to be more resilient and sustainable at a macro-level.
In your opinion, what are the main trends that are salient in your country currently?
The environmental legal framework in Chile has undergone a deep and rapid transformation in the last decade. Chile has transitioned to a more holistic approach to the environment and its components, in which citizens and local communities have taken an active role in the environmental discussion. After several legislative reforms, Chilean regulatory framework now follows international standards on Indigenous consultation, access to justice and citizen participation, transparency, and public participation, right to water, protection of biodiversity, among others. In sum, over the past years the clearer trend relates in my view to a heightened scrutiny on how companies are taking care of the environment. On one hand, there is more public scrutiny and stricter regulations on the mining industry and its environmental standards. On the other, through taking good care of the environment, businesses can identify and manage the many environmental-related risks threatening their growth and viability or social licence.