Legal Departments Leveraging Tech for Risk Management, Collaboration: Report
GCs are deploying software to automate routine risk and compliance work and finding opportunities to collaborate with other departments, Deloitte reports.
December 10, 2018 at 11:00 AM
3 minute read
Many legal departments are using legal technology to help decrease risk, automate compliance work, and allow in-house to become more connected to other departments, according to a new Deloitte report.
On Dec. 3, Deloitte released “Going Beyond Risk and Compliance: Legal Functions Embracing Digital Technology,” a report examining the emerging role law departments can play company-wide. For the report, Deloitte partnered with Oxford Economics to survey 300 in-house legal department executives in nine countries.
The findings stressed that legal is facing increasing pressure from within their organization to do more with the same or fewer resources, take on new responsibilities and contribute as a business partner to the organization's strategy.
Many legal departments are aligning their department's strategy with the organization by refining processes and workflows and using new software, according to the report. They are also using outsourcing and shared service centers to drive efficiency and standardization.
Collaboration across departments seemed feasible as almost all (86 percent) of respondents said their legal department has data platforms that allow collaboration with other departments.
But more than half weren't investing in technology to automate manual work or allow for even more collaboration.
Still, many legal departments were leveraging technology to help address risks facing their corporation. Over half, 56 percent, of respondents reported their department is investing in risk management and compliance technology. Indeed, 65 percent of companies with a 15 percent or more revenue and profit increase said their legal team focuses on risk, while 73 percent of companies with no or negative revenue and profit growth focus on risk.
According to the report, 81 percent of respondents said the attorneys in their department have the right skills and expertise to add strategic value within the company. However, 46 percent reported that the C-suite had a limited view of how legal can become more strategic.
On the software front, Deloitte wrote it's seeing an increase in clients' legal teams “proactively” looking to buy or are building software enabling globally consistent delivery of user-friendly legal advice for its business. Contract automation, document management and analytics software and blockchain-based technology are becoming expected by clients from their legal service providers.
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