How to Use Legal Research as a Proactive Legal and Compliance Risk Management Tool

Legal research has traditionally been used by corporations and law firms alike to support decision making, back up an opinion or win an argument. However, the use of legal research as a proactive tool in an effective compliance risk management program is new and growing.

Conducting legal research early within the corporate compliance process can provide information essential to accurately identify the potential risks that a company may face across its business units, geographies and markets. The timely use of legal research may result in better understanding and decision making and improve risk management effectiveness.

A strategic approach to legal research comprises five key elements:

• Take a proactive approach to legal research by anticipating potential problems, helping in-house counsel increase its role as a strategic advisor to the business and strengthening corporate governance and accountability.
• Accurately scope the research by having legal counsel identify the range of risks they face and the dimensions of each issue.
• Engage legal experts to maximize accuracy by extending the reach of legal teams, allowing them to provide a deeper analysis of issues and offer more focused knowledge to corporate governance necessary to manage risk over the long term with speed and efficiency.
• Share the legal research results across the enterprise to best impact legal and business strategy throughout the organization.
• Revisit the legal research regularly to keep it up to date, ensuring its continued value in the corporate risk management process.

Once legal research becomes ingrained into a company's risk management program, that company will find it easier to revisit critical issues on an ongoing basis, monitor the legal landscape and employ experts to assess cutting-edge developments.

A truly effective risk management program includes a plan for legal research as part of an organization's corporate compliance program. The five elements outlined above help companies effectively apply legal research to proactively determine the legal consequences of actions, so they can make better, more informed decisions about how to proceed in the marketplace.

LRN's dedicated team of 350 professionals brings a wealth of experience ranging from academia, business, law, philosophy and technology, to help your organization create a viable legal research plan. Go to LRN.com to learn how you can use legal research as an effective enterprise risk management tool.