GCs Are Spending More Time on Enterprise Risk Management
Corporate Board Member magazine and FTI Consulting Inc.'s seventh annual survey shows in-house counsel are spending more time on enterprise risk management.
August 13, 2007 at 09:49 AM
5 minute read
The original version of this story was published on Law.com
Corporate Board Member magazine and FTI Consulting Inc. released findings of their seventh annual legal survey of 235 general counsel and 802 board directors.
The survey found that with the rise of leveraged buyouts in corporate America, companies are spending more time on enterprise risk management (ERM), specifically focusing on governance changes and merger and acquisition risks. “If crisis management is the remedy to an explosive situation, ERM is the preventive medicine,” said FTI's Roger Carlile in a statement.
The survey also included findings on how GCs handle outside counsel, SOX compliance, e-discovery and crisis management.
The results follow:
Enterprise Risk Management
- Forty-eight percent of GCs said they spent more time on ERM in 2006 than in previous years, although only 25 percent said they would like their boards to allow more time for ERM in 2007.
- Thirty-five percent of GCs said governance changes were the area most in need of an ERM assessment, while about a third said that understanding M&A risks should be their highest priority.
Outside counsel
- Fifty-seven percent of GCs said they would seek personal advice from outside legal counsel, and 48 percent said they would seek advice from non-legal outside advisors.
- Sixty-six percent of GCs cited M&A issues as the cause of reliance on outside advice, while 43 percent said they would seek outside advice on SOX compliance.
- In addition, 24 percent of GCs said they sought personal legal advice on antitrust issues, compared to only 7 percent of directors.
- Eighteen percent of GCs said they seek outside advice on e-discovery, 12 percent on bankruptcy and 11 percent on data retention. This is in great contrast to directors; only 2 percent said they seek outside counsel on these issues. Three percent of GCs said sought outside advice for defense of criminal charges.
E-discovery
- Thirty-four percent of GCs agreed with the statement that e-discovery is not a significant issue for their companies, in contrast to 50 percent of directors.
- Seventy-five percent of GCs said they are increasingly concerned over the handling and managing of electronic data.
Crisis management
- Twenty-seven percent of GCs said they spend more time on crisis management in 2006 than in previous years, and 57 percent said they will spend the same amount of time on it this year as they did last year.
Corporate Board Member magazine and
The survey found that with the rise of leveraged buyouts in corporate America, companies are spending more time on enterprise risk management (ERM), specifically focusing on governance changes and merger and acquisition risks. “If crisis management is the remedy to an explosive situation, ERM is the preventive medicine,” said FTI's Roger Carlile in a statement.
The survey also included findings on how GCs handle outside counsel, SOX compliance, e-discovery and crisis management.
The results follow:
Enterprise Risk Management
- Forty-eight percent of GCs said they spent more time on ERM in 2006 than in previous years, although only 25 percent said they would like their boards to allow more time for ERM in 2007.
- Thirty-five percent of GCs said governance changes were the area most in need of an ERM assessment, while about a third said that understanding M&A risks should be their highest priority.
Outside counsel
- Fifty-seven percent of GCs said they would seek personal advice from outside legal counsel, and 48 percent said they would seek advice from non-legal outside advisors.
- Sixty-six percent of GCs cited M&A issues as the cause of reliance on outside advice, while 43 percent said they would seek outside advice on SOX compliance.
- In addition, 24 percent of GCs said they sought personal legal advice on antitrust issues, compared to only 7 percent of directors.
- Eighteen percent of GCs said they seek outside advice on e-discovery, 12 percent on bankruptcy and 11 percent on data retention. This is in great contrast to directors; only 2 percent said they seek outside counsel on these issues. Three percent of GCs said sought outside advice for defense of criminal charges.
E-discovery
- Thirty-four percent of GCs agreed with the statement that e-discovery is not a significant issue for their companies, in contrast to 50 percent of directors.
- Seventy-five percent of GCs said they are increasingly concerned over the handling and managing of electronic data.
Crisis management
- Twenty-seven percent of GCs said they spend more time on crisis management in 2006 than in previous years, and 57 percent said they will spend the same amount of time on it this year as they did last year.
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