Articles Posted in Rethinking the Management of Legal Risk

After 12 years running two divisions at Whirlpool Financial, and then as an executive at GE — and having been a business lawyer before that, and thereafter — I have reached this conclusion:

Protecting the business from legal risk should be entrusted mainly to management — with attorneys accountable to the CFO, COO, or some other P&L executive in a supporting role.

This goes against the legal profession’s prevailing outlook; and corporate practice has long conformed to that outlook:

“Management of legal risk is a job for lawyers”.

But that outlook fails to prevent legal problems; and it leads to ever-increasing legal spending.

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