From Legal Compliance to Cultural Competitiveness: The Role of the General Counsel in Risk Management

Abstract

Reports of spectacular malfunctions at well-known international companies keep hitting the headlines. When we use the word ‘malfunctions’ in this context, we do not mean incidents caused by technical failure or force majeure, such as railway accidents, aircraft crashes or breakdowns of industrial machinery. The focus is rather on the never-ending announcements such as “Profits Plummet as Company A Fined for Restrictive Practices” or “Company B Paid Billions in Bribes.” Current and past events in the banking industry worldwide also raise the question as to why things keep going wrong in areas where the intrinsic risks and perils are or, at least, ought to be known and to be avoided or at least managed.