CMS have published new Risk Report – Advising the Board on Litigation Risk. When a company is facing significant litigation, either as a claimant or defendant, its board needs to fully understand the general risks of litigation. Decisions to litigate as a claimant will usually be made at a senior (or board) level; being a defendant in proceedings is not usually a matter of choice but deciding to defend (rather than settle) is. In both cases, as litigation is often the last resort where other attempts to resolve matters have failed, the board needs to be well briefed.
Modern corporate boards are expected to cover an ever-wider degree of risks and responsibilities. With Boardroom time at a premium, directors and their advisers need to be able to make effective decisions based on what they must know, want to know and ought to know to equip the board to make the best decisions in the interests of the company.
The ‘Advising the Board on Litigation Risk’ Report considers four main risk areas:
- Financial risk
- Commercial risk
- Reputational risk
- Regulatory risk
A practical in-house legal perspective is also provided by Grant McCaig, Head of Litigation at Phoenix Group Plc, together with consideration of Strategic factors; Confidentiality and privilege; and Litigation or arbitration.
The ‘Advising the Board’ series links to the ‘CMS Advising the Board Training Programme’ which is highly flexible, relevant and seeks to cover the three core sections of a Board’s to-do list, namely:
- Have to do: meeting regulatory requirements for directors and senior managers, we can deliver this and provide all the necessary supporting documentation.
- Want to do: training that supports directors on specific issues around their role including those which may give rise to personal liability.
- Ought to do: topics of strategic importance for the company and the board– including pensions, remuneration, ESG and cyber risk.
To read more about the Programme please click here.
To read the full Risk Report click on the link.