Team size: Six

Focus on: The general counsel’s changing role in GRC

Today’s general counsel are expected to apply their legal acumen and experience to help their company use governance, risk, and compliance to strategically protect against risk in ways that lawyers were not previously asked to advise on and unlock new opportunities. This is a change from the more limited scope of the chief lawyer, the legal safety net, who suggests whether actions or inactions comply with laws or regulations.

The role of the general counsel is a more complex set of responsibilities than it once was. That is a trend that we have seen continue in response to increased regulatory focus on issues such as privacy, information security, compliance, and corporate governance. Given that legal risk and corporate exposure encompass more of the business than just the legal department, traversing most processes and activities carried out by the business on a day-to-day basis, it is seemingly a natural fit to have the chief wearing the legal hat play an integral role in helping the company navigate and implement effective risk management practices.

It is natural to think that the GC can advise the business on utilising effective risk management practices, given that lawyers are trained to manage risk. However, even this portion of the role has evolved over recent years. Given the shift in today’s global business climate, there has been a greater need for the general counsel to advise on maintaining the company’s reputation and integrity. The in-house counsel is now more than ever expected to communicate these issues to the board. Their training as issue spotters and persuaders can effectively protect the business’s interests. This, however, means that internal lawyers must be proactive in their ability to foresee risk and understand any governing laws, but more importantly, their ability to understand the potential consequences to the business. Ultimately, this means that the general counsel is expected to have an intricate understanding of the company’s operations and business sector to advise the board regarding data privacy or cybersecurity proactively.

Perhaps the most significant change to the general counsel’s role in the company’s GRC efforts is the expectations of their involvement in strategic planning. This often comes from the general counsel creatively counselling the board and senior management through their knowledge of relevant laws and regulations. This is an important element to a company unlocking competitive advantages. Every risk that a business faces does not necessarily need to be seen as something that is harmful or needs to be eliminated, but instead can be viewed as a potential opportunity. The general counsel’s natural risk management experience, together with the modern general counsel qualities of being process-orientated planners and technologically savvy leaders, has made them go-to strategic advisers for the board.

In today’s business climate, successful companies are driven by more strategic business decisions, agility, process planning, and speed to market. These elements are inherently rooted in understanding and acting upon the legal and regulatory landscape. But given the change in the qualities of in-house lawyers, today’s general counsel are more well-positioned than ever to lead through a well-implemented GRC strategy.