PROFIT NOT PROCESS

to open things up. Some aspects of the role of legal involve transaction execution, advocacy (i.e. putting the best case, when robust) and disputes. Legal is nonetheless best considered as performing a control function, reflecting the overriding importance of its role as a “protector” of the bank.

To fulfil this role, in-house lawyers must proactively engage with the business to understand fully the business activity, to assess the risk emanating from it, and to assist senior management in determining which risks to take and how best to manage them.

Wise Counsel Must Be Elevated To The Top

From a governance perspective, the general counsel should report directly to the chief executive; direct access to the board is critical. The UK financial regulators’ decision not to treat the general counsel as a “senior manager” has had adverse ramifications, at least symbolically. They should also be central to communications with regulators and the market, shaping the reasoning that buttresses the bank’s position in lawyers are not being enlisted to think about how the law is to be applied to facts, the core characteristic of legal

Sometimes their contributions are procured in a way that means they can be too quick or even erroneous in their answers.

Properly defined processes allow senior management to spend more time on the judgement calls which define the success of businesses.

Adjustments to the way in which legal departments operate may be necessary such interactions.

The in-house lawyers need to evaluate what they can best do, allowing time for thinking and making efficient use of outside counsel for additional analysis and skills, especially for sporadic tasks. They can use processes to produce first drafts of standard agreements, for aspects of document management and for investigations, through the use of automated production systems, artificial intelligence, and cheaper, outsourced lawyers in offshore locations.

Properly used, lawyers can provide the solution to many of the issues facing the banks, freeing up time for judgement, unlocking value, saving cost and helping to enhance risk management. Lawyers are an essential ingredient to operating the modern bank in an efficient, more profitable manner.