After reading Chapter 28 (The Reluctant General Counsel) and Chapter 29 (Transforming Risk Management at Akawini Copper) of the text, A)  Respond to the following questions: What are Jason’s opti

Ashok:

1. 
   I believe at this point, Jason’s options are very limited. Accepting a risk management program without involving the legal department is itself a huge risk for many reasons. First, it is important for the company to understand that the risk management decisions can sometimes have huge legal implications. For instance, when the company gets into a myriad of contracts, not assessing the legal risks or even thinking too much about the ramifications might turn out to be a show stopper. Specially, since the company is in a heavily regulated financial industry, regulatory risk would pose to be the biggest issue. Sometimes, the directors or companies in certain circumstances, be liable for criminal penalties if the company breaches the regulations. All of these require specialist legal assistance. Although legal team involving in risk management decisions might bring in more risk to the company, I think not involving will prove to be a disaster. They need to atleast advice the management informally, help in audit evaluation and provide legal risk management assistance even if it turns out to be a loss for the company at this point since long term effects are more important.

1. The tasks that I would expect in the first-year risk management transformation plan are the following. The risk management program will be:

• Integrated into all key decision making

• Integration into strategy, business and project planning process

• Key controls should be identified and allocated for monitoring

• Learn from the previous success and failures

• Viable options for treating the risks identified should be adopted

References: 

Fraser, J. R., Simkins, B. J., & Narvaez, K. (2015). Implementing Enterprise Risk Management Case Studies and Best Practices. Hobonken, New Jersey, USA: John Wiley & Sons, Inc.