Workshop 2 August 20, 2024 (AWST) 1 Team 2 –

Transcript:Workshop 2 August 20, 2024 (AWST) 1 Team 2 –:
Workshop 2 August 20, 2024 (AWST) 1 Team 2 – Wells Fargo 2 Module 3 Compliance, Ethics and Legal Risk Management 3 Corporate Compliance: A Critical Skill for In-House Counsel 2024 ACC CLO Survey Regulations and enforcement (53%), data privacy (41%), and cybersecurity (37%), remain the top three issues that CLOs consider to be the most important to the business. 4 Corporate Compliance: A Critical Skill for In-House Counsel 2024 ACC Chief Legal Officers Survey 69% Respondents were presented with a comprehensive list of 19 corporate functions and were asked to indicate which function reports to them. More than three in four CLOs oversee the compliance function in their organization 5 44% 43% 38% 22% What Functions Report To The CLO? Compliance, Ethics and Legal Risk Management are Intertwined In-house counsel should remember that legal compliance is “the right things to do!” This means having a checklist of requirements (i.e. “things to do”) under the law. To create a checklist of the relevant legal risks your company needs to address, you need to conduct a legal risk assessment. But remember, it is not enough to comply with the laws, in-house counsel must also know “the right thing to do!”, i.e. the ethical thing. Checklist 6 Your Company’s Compliance With All Laws and Regulations Globally is an Enormous Task* The ACC Report on Law Department Management states that “Sixty-two percent of in-house counsel worldwide have cross-border or transnational work.” The executive summary goes on to explain, “with geographic expansion comes the need to implement both business and legal strategies that make it possible to conduct operations within multiple territories.” Ultimately, geographic expansion has led to “an exponentially intensified regulatory environment.” * Association of Corporate Counsel, ACC Law Department Management 2016 Report, Executive Summary at 4 (2016). 7 Corporate Compliance in an Exponentially Intensified Regulatory Environment* This has led to a “rise in compliance as a corporate priority.” Further, as they expand across the globe, “corporations must now take extraordinary steps to ensure the integrity of far-flung supply chains.” “In discussing the great importance of compliance in a global sense, it is clear that local and foreign regulations are equally important.” And so companies must “comply with a vast number of regulations in a changing landscape…” *Association of Corporate Counsel, ACC Law Department Management 2016 Report, Executive Summary at 4 (2016). 8 Complying with Laws and Regulations Globally Requires a Legal Risk