A vast majority of legal executives surveyed either already have or are currently in the process of developing a crisis management playbook to guide their organization if a fraud/compliance issue were to arise, according to a new report by conferencing management firm Consero Group.
59% of respondents indicated they have such a document, 19% said one was presently in development, and 22% had no an emergency management plan to deal with a crisis. This finding suggests most companies are preparing to handle compliance issues before they occur, and thus are in a better position to pull through legal crises.
The survey of Chief Litigation Officers from Fortune 1000 companies also found that for more than half (55%) of companies, regulatory changes had materially impacted their internal investigations over the last 12 months.
Close to half of the respondents reported that their company’s legal team takes the lead in directing and managing internal investigations. For 36% of those surveyed, legal co-leads with internal audit and other functions, which may allow for a more holistic approach to the process. Only 17% percent reported that legal is brought in upon request.
Many investigations originate from or involve regulators. Fortunately, 81% of respondents report having a positive relationship with external regulators.
One of the more disconcerting findings from the survey was that more than 4 in 10 Chief Litigation Officers believe corporate executives are not adequately educated on legal risk.
Click here to access the link to download the report.