I originally published this entry in the Blog Derecho e Inversión under the spanish title:¿Proactivo o reactivo? Descubre la diferencia entre un gestor de riesgos legales y un abogado
In this blog everything is simpler. So let's get straight to the point. I will give you some points on the fundamental differences between lawyers and a legal risk manager (LRM) in terms of approach, objectives, expected results and main activities. These four dimensions are, in my opinion, sufficient to understand the existing disparities.
Oh! But first let's just remember a few important points: The ISO 31022 standard defines legal risk related to legal, regulatory, contractual matters, and non-contractual rights and obligations. Let's remember this: risk is the uncertainty about the objectives. So, everything that generates uncertainty about the company's objectives must definitely be managed.
Focus:
Lawyers / Attorneys:
They are generally focused on the advice and representation of matters that have a legal nature in their various disciplines.
There is generally a reactive approach, as it seeks to address problems that jump day by day.
It seeks to solve problems and also protect the interests of customers.
An approach based on the knowledge and application of rules, doctrine and jurisprudence.
Legal Risk Manager (LRM):
It has its approach based on the prevention, mitigation and treatment of legal risks.
The GRL seeks to be proactive, anticipating problems that could be caused by a regulatory issue and expands to several areas of the company.
It seeks to prevent, create a regulatory compliance framework and reduce risks.
An approach based on continuous analysis and impact assessments to provide timely information that serves in decision-making.
Objectives:
Lawyer: Protect the interests and rights of your clients. Manage the cases in different topics of the right that the client needs.
LRM: It is the identification, analysis, evaluation and above all minimize the impact of legal risks. It is also transversal throughout the company. Their goal is to link each area to the exhibition they may have.
Main activities:
Lawyer: Legal advice, representation in proceedings, investigation and preparation of cases, negotiation and dispute resolution.
GRL: Risk assessment, implementation of policies and procedures, continuous monitoring.
Results:
Lawyers. Obtaining favorable results for clients in legal matters. Win administrative, judicial, arbitration, contentious cases. Successful process management.
GRL: Reduction of exposure to legal risks and litigation. Improvement of the risk-based culture. Promotion of basic policies for prevention without hindering the development and dynamism of the company.
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