Will your Chief Legal Officer have a new boss soon?
Chief legal officers may have new bosses soon, warns Rees Morrison. He tells the story of a U.K.-based finance company that hired a Chief Risk Officer. Now the following departments report to the CRO: legal, audit, risk and compliance.
Hmmm, I thought when I read this. Can a single financial services company, especially one with the audacity to name itself "Egg," really drive such a change?
Morrison anticipated this question. Out of the files he pulls a spring 2005 survey that says 45 percent of responding companies had hired a CRO. He asks, "Will this be the fate of law departments over time; or, stated differently, are they at risk of reporting to a CRO?"
I think it's key to note that the majority of respondents to this survey are in the financial services sector. Given the data above and a little complicating factor known as Sarbanes-Oxley, I would think that chief legal officers would be thrilled to hand off some
blame, er, credit to a CRO.
Posted by Laurel Newby on December 12, 2005 at 12:47 PM | Permalink
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