By Blandine CORDIER-PALASSE, Revue RH&M n°55 p.42
Cybercrime - Strategic risk - Financial risk - Big Data
Global regulation - Evolution of governance...
Let's identify the risks that can threaten value, but also those that a group can take to create value.
Cybercrime... A major emerging concern that wasn't even a consideration a few years ago.
In an extremely competitive environment, groups are faced with increasingly complex strategic decisions. These decisions have to be taken in a regulatory, standard-setting and multi-risk business environment.
Mergers, acquisitions, globalisation, Big Data, intellectual property, patents, environment, standards.... These factors, which are external to the company, are increasingly decisive for its management. They have a fundamental influence on the decisions taken by the Board of Directors and the Executive Committee.
The foundation of a compliance system is the corporate culture and its commitment.
More and more international groups are adopting a compliance approach. They are realising that compliance is a fundamental lever for internal organisation and risk prevention, and a factor in good governance.
Well managed, methodically and efficiently deployed, it is a structuring lever. It is at the service of healthy growth and secure relationships with partners, customers and suppliers. It responds to one of the company's major challenges - competitiveness - while ensuring a spirit of loyalty and transparency that complies with international regulations.
The role of the Legal Department is strategic.
The role of the legal department has become strategic. It is a real competitive tool for adapting to the changing rules of the game.
As a business partner, it must support the Group very proactively, anticipating and assessing risks as it deploys its strategy, conquers new markets, expands its business, establishes new locations, enhances the value of its brands... and ensures compliance with good corporate governance.
It brings the vision of a technical expert but also a cross-functional player to all the company's issues. Involved at a very early stage in strategy and projects, it must understand the areas of risk, assess them and actively contribute to reducing their impact.
This involves defining the major risks and related issues, in line with the strategy. It also means translating them into business terms. It's a real investment that will bring high added value. Assessing financial, legal, judicial, image and reputation risk thus becomes a key factor in the Group's performance.
"Tone-at-the-top and Buzz at the bottom
A corporate culture of ethics and compliance is an effective strategy for mitigating risk. A global approach is required.
It permeates the entire internal organisation and calls for the collaboration of the various functions, players and vectors of change. Driven by General Management, it is relayed by the HR, audit, legal, financial, sales and operational departments.
Some of those who have been "pinpointed" and consequently made aware of the problem have decided to change the whole culture of the company and give everyone a sense of responsibility, in line with the global strategy, rather than multiplying the processes which risk taking away responsibility.
A rare and sought-after profile
Managing such a system involves identifying the risks. It also means putting in place clear policies. These then need to be disseminated throughout the Group and adherence to them monitored with a great deal of leadership. This means that the project is eminently cross-functional, and compliance teams can be multi-disciplinary.
It federates employees and ensures transnational cohesion around the Group's values, which everyone must identify with and make their own: empowerment and commitment to demonstrating added value, respect, integrity, a sense of service to customers - both internal and external - all leverage individual contributions to the Group's overall and collective performance.
Blandine CORDIER-PALASSE
Runs a consultancy specialising in human strategy and the organisation of Legal and Compliance Departments, and recruits in the legal, labour relations, compliance and governance functions... Its core business.
Clients: Companies in all CAC 40, SBF 120 and other sectors. She manages a team within the firm she founded, BCP Executive Search, after having been a partner at Boyden, a lawyer at Slaughter & May and then a legal director in listed groups. She also holds a doctorate in law and is co-founder and Vice-President of the Cercle de la
Compliance.
For more information, visit www.bcpsearch.com and www.lecercledelacompliance.com
