As 2015 winds down, everyone starts to think about 2016.  They make grandiose plans that perhaps they cannot keep or are simply to agressive in their planning.  Managing risks, like many other business processes takes planning and careful consideration. (more…)

Reputational risk or the risk of damage to a company’s brand is of course very important these days.  It is of primary importance to executives and risk managers in many multinational companies and is seen as one of the top risks a company may face.  In fact, in Aon’s Global Risk Management Survey 2015, of the top ten risks that are of concern to companies, damage to reputation/brand is listed as number one.  (more…)

Law firms and other service oriented organizations are just beginning to realize that risk management concepts apply to them as well as manufacturing based organizations.  Lately, consultants are advising law firms to implement project control methods, look at legal processes from a six sigma point of view and even apply the basics of marketing 101 or sales 101 to increase business from potential clients.  (more…)

Recent events in the news reminds everyone that most companies will eventually be subect to  government investigations and intervews.  As more and more countries tighten up anti-trust enforcement and regulations as well as other laws concerning data privacy, taxaion,etc, it is only a matter of time before your company faces a government investigation of some sort.  Therefore, to help prepare for such a day, I've created a checklist of a few items that should be considered or implemented when preparing for a government  investigation.  A properly laid out government investigation policy will help any company prepare for such an event.  A few of the items are listed below:

Government Investigations and Interviews

Checklist for Responding to law enforcement requests, government contacts or attempted interviews, and criminal and administrative searches.

1. Preparation Before A Visit

1. 1.  A Senior Manager or duly appointed Manager at each facility shall be designated to coordinate a response to law enforcement requests, government contacts or attempted interviews, and criminal and administrative searches.
   2.  Written security procedures need to be implemented at each location to  insure that all visitors to non-public areas are identified and that the purpose of their visit is established.
2. 1. Daily visitation log procedures shall be  established and reviewed with appropriate personnel. The procedures shall instruct reception and security personnel to contact immediately the Designated Senior Manager in the event of a visit by law enforcement personnel.
   2. The name and contact number for the Designated Senior Manager or Manager and the General Counsel ( or designated outside counsel) shall be posted at the reception area.

2.. During a Visit

1. 1. The designated Senior Manager or Manager shall immediately notify the General Counsel , or if there is no General Counsel- then an outside legal counsel , about the presence of law enforcement officials on the company premises.
   2.  The designated Senior Manager or Manager should ask the lead law enforcement officer executing the search warrant for and verify each agent’s identification and agency affiliation and a copy of the warrant and supporting affidavit.
   3.  A copy of the court order (subpoena or search warrant and the supporting affidavit) should be immediately sent to the company's General Counsel.
   4.  If the court order is in the form of a subpoena, the General Counsel will (i) review the subpoena for any legal defect, including the manner in which it was served on the company, the breadth of its’ request, its’ form and (ii) review the information that is to be provided in response to the subpoena before any information is released.

If the court order is in the form of a search warrant, (i) The designated Senior Manager or Manager  may request that the agents secure the premises but delay the search and seizure until the General Counsel or outside legal counsel can arrive, review the search warrant, witness the execution of the search warrant and assist in the protection of legally privileged materials.

 The Impact of Korea’s New Anti –Corrution Laws On Internal Investigations

Korean companies are now faced with issues that they have not had to deal with before- namely anti-corruption domestic laws ( the  Kim Young-Ran Act or the “Act”) that provides criminal penalties for bribery, vicarious liability extending criminal penalties not only to the employee but the  employer as well and expanding bribes to also include the exchange of monetary interest without a duty relation component.  This puts Korean companies in a difficult position domestically as not only do Korean companies have to worry about prosecution under the new Act, but they also should worry about how this relates to the FCPA and UK Anti-Bribery Act.  (more…)

Itaewon International Festival

Do not follow the crowd...Though more and more companies are showing an interest in risk management, it is intereting to note that most still manage risk on an ad hoc basis.  Yes, some companies look at risk management from an ERM approach- or Enterprise Risk Managment approach.  Or, as I have in the past discussed,  a coordinated Legal Risk Management approach.  (more…)