LEGAL RISK

When the IoD conducted a survey into legal services in summer 2001, the questions about lawyers were mainly directed to quality of service and value for money. It was interesting to note that while 66% of respondents were satisfied with quality, only 50 % felt they got good value for money.

Many business people are wary that when external advisers offer to review or help in areas where they have not been consulted, this could herald burgeoning cost and complication.

Businesses are faced with a growing need to demonstrate effective internal controls at a time when the more traditional controls are disappearing in the intense drive to deliver profits. Business opportunities have to be seized or discarded rapidly.

Companies have to develop reliable and workable processes which will enable business to be won profitably and legal risk to be managed. Having well briefed employees who are confident in dealing with regular issues and who know where to turn for unusual or major issues is probably the best form of internal control. You will face large legal bills if you don't factor in legal advice at the right moment. We have developed a process which enables business people to identify the key areas of legal risk and prioritise the effort to manage them.