Recent years have seen a heightened focus on risk management. Establishing a robust framework for risk management has become one of the most important aspects of corporate governance. The Sarbanes-Oxley Act and the Canadian Securities Administrators National Policy 58-201 require that the Board of Directors address the principal risks of an organization's business and implement appropriate systems to manage those risks.

Management of an organization is also required to annually evaluate and certify the effectiveness of internal controls over financial reporting (ICFR) and other disclosure controls. To meet this objective, management relies on a complex system of internal controls and also on the input of critical functions or departments within the organization, such as accounting, legal, IT, internal audit and human resources, to identify and manage particular risks. Risk management or enterprise risk management (ERM) expands on internal controls, providing a more robust and extensive focus on the broader subject of risk. A robust risk management program can help an organization satisfy its internal control requirements and more strategically manage risk.

The importance of effective risk management becomes evident in criminal or regulatory investigations or proceedings in respect of fraud or corruption. Several recent settlements between regulators and companies have included a requirement for the implementation of an enterprise risk management program.

An investment in strategic risk management can greatly minimize the impact of an adverse event to any business by introducing proactive and protective measures. In particular, legal risk management can minimize the likelihood of legal proceedings and mitigate harm such as reputational damage from criminal, regulatory or civil actions.

Each Business is Different and So Are Its Risks.

Risk Management is a co-ordinated, systematic and disciplined set of risk management processes, including policies and practices, that focuses on maximizing an organization's competitive advantage by addressing speculative risks, as well as traditional risks. The goal of risk management is to maximize shareholder value and to enable an organization to fulfill its greatest productive potential.

Risk Management creates a culture of risk consciousness and risk mitigation throughout the organization.

Creating Value Through Legal Risk Management

Risks can be strategic, operational, financial, regulatory or contractual. A central goal and challenge of risk management is improving risk management capability and coordination while integrating the output to provide a unified picture of risk for stakeholders.

The law is constantly changing, whether through new regulations, court decisions or emerging priorities of the authorities. Settlements with regulators can affect best industry practices overnight. An organization's risk exposure changes with the changing landscape.

Organizations must regularly review their risk management philosophies, policies and processes in light of changing requirements, and increasing concerns and demands by various stakeholders. Legal risk management ensures that potential legal liability, whether criminal, regulatory or civil, is factored into risk assessments and risk mitigation plans. Legal risk management also ensures that the chance and seriousness of potential liability is part of the overall decision-making process.

Gowlings Can Help

A governance culture that includes a robust legal risk management program can save time, money and reputation. Gowlings can work with you to optimize a risk management program that meets the needs of your organization.

We conduct assessments to identify risks that could significantly affect an organization's ability to achieve its strategic and financial objectives or could harm employees, customers, stakeholders or communities.

We can help you navigate an increasingly regulated environment, maintain privilege over matters, retain experts, conduct internal investigations, manage external investigations, handle multi-jurisdictional/cross-border matters, provide "comfort" or second opinions, draft required policies and procedures that satisfy current and benchmark governance standards, and work with you to implement a Risk management program.

We can also assist you in identifying potential for loss or crisis, establishing regulatory interface, reviewing and analyzing risk tolerances and in providing regular briefings with in-house counsel/staff on emerging legal risks and mitigation options. We also advise on crisis planning including media and public relations, assist in document management, and perform litigation post-mortem assessments.

The Risk Management team at Gowlings provides a combination of global and local knowledge with an overall understanding and approach to the unique risk management profile of your organization. Call on Gowlings' risk management experts to assist you with your risk management needs. Our multidisciplinary teams will assist in improving corporate governance, by designing and implementing up to date risk management processes, policies and practices. When you work with counsel who approach business needs and risks with a multi-disciplinary, strategic approach to maximizing value and avoiding or minimizing liability, your legal risks will be managed better.

Gowlings unique approach to risk management provides you with senior experienced professionals across every legal discipline. This allows you to bring strategic, comprehensive big-picture thinking to the management of your legal risks.

Risk Management ... The right investment for the times.

Areas of expertise:

• Civil Fraud
• Class Actions
• Commercial Insurance Law
• Commercial Litigation
• Crisis Management
• Insurance and Professional Liability
• International Business Ethics and Anti-corruption
• Occupational Health & Safety
• Privacy & Information Management
• Product Liability
• Restructuring and Insolvency
• Securities Law