Corporate legal risk is one of the major risks faced by modern enterprises with respect to their operation and management, and is distinct from other forms of corporate risk due its extensive influence, range of potential consequences and transferability. In modern enterprise governance, legal risk management has become an important means of ensuring the healthy development of enterprises. How to effectively establish and maintain legal risk and compliance management systems and how to utilize these systems to reduce business risk have gradually become a major focus for the management of large enterprises and legal practitioners and are necessary management objectives to achieve.
On July 27, 2017, Han Kun Law Offices held a seminar entitled "Establishment and Maintenance of Corporate Legal Risk / Compliance Management Systems". Mr. Liu Dong, a partner at Han Kun, chaired the seminar. Mr. Liu gave a presentation regarding why corporate legal risk / compliance management systems are established, the main content of legal risk management, the general types of management models and how to establish and maintain the corporate legal risk management systems.
The seminar attracted more than 130 attendees
Mr. Liu Dong mentioned that enterprises may face increased operating costs and a decline in business competitiveness if they cannot control legal risk in advance through prevention and control, closely monitor risk events when they occur and respond effectively once they have occurred. Although most companies take legal risk control measures during their day-to-day operations, a lack of systematic design and maintenance may result in these measures achieving little effect and while costs remain high. Enterprises should establish and maintain legal risk management systems suitable for each individual enterprise based upon industry characteristics and the business model. Through the management of data, systems, processes and activities, legal risk management systems can assist enterprises to effectively avoid, shift, reduce and deal with legal risks, reduce the legal costs caused by such risks and improve enterprise competitiveness.
The attendees attentively listened to the speech and took notes.
The seminar proved to be a complete success and drew participants from many well-known enterprises, including Mengniu, Xi'an Janssen, ENTI, Sinochem, National Grid, PKU Healthcare, Northern Light, CrediteEase, Founder H Fund and China Car Experts.
