Regulation creating ‘dramatic uncertainty’ – AMRAE

Gérard Lancner, counsellor to the president at AMRAE, said that the legal environment for companies is becoming more complex by the day. He warned that firms are struggling to keep track of all the new rules in the differing countries in which they operate. "Today it is very difficult to do business. Legal uncertainty is dramatic," Mr Lancner said. "Companies cannot live under uncertainty and facing the unknown." He added that risk managers must regularly keep track of the legal risks facing their companies. "Time after time you need to make sure that your company is operating in a secure environment," he warned.hide"Every time that you develop a new project, it is embedded in a legal environment. And to make mistakes, today, costs very dear," Mr Lancner continued. "Unfortunately we live today in a world that is becoming ever more complex in terms of regulation." He continued: "Regulation evolves at a terribly fast pace and we struggle to follow the changes. Companies operate in countries where legislation is fluid enough to create a state of permanent uncertainty." Mr Lancner, who is also the Head of Risk Management and Insurance at Yves Rocher, made the comments during the launch of a new book published by AMRAE that tackles the subject of legal risks facing companies. The book, entitled La Gestion du Risque Juridique dans l'Entreprise, has been published in French and can be purchased from AMRAE's website (www.amrae.fr). The 120-page work is the first volume of a new AMRAE collection that aims to promote further dialogue between risk management and other corporate functions where activities often overlap. Others volumes dealing with subjects such as information technology, finance and human resources will follow. "Risk managers do not work alone," said Gilbert Canaméras, President of AMRAE, in the opening speech of a conference in Paris that marked the publication of the book. "We need the help of other people in the company. And we need to avoid the temptation of working in silos." The book was written with the help of Fidal, a law office, in cooperation with the French risk management association and was two years in the making. "Risk managers have the mission to identify all the risks that can prevent a company from reaching its goals," Mr Lancner explained. "Among those risks there are some that follow a specific technique. They have their own codes and their own languages. There is a proper technique to understand such risks." He mentioned as examples IT risks, scientific risks and financial risks. "Those are realms where we, as risk managers, are not experts, so it is difficult for us to tackle them," he said. Mr Lancner added that risk managers need to evaluate the pertinence of risk solutions other departments are implementing. The 'Dialoguer' collection of books that Amrae are publishing aim to provide some background to help risk managers cross that bridge. "The book presents solutions to legal questions using risk management methods," Mr Canaméras said. "That is the great originality of the work." Mr Lancner stressed that mastering legal risks can bring competitive advantage. "If we can find solutions to legal risks that our competitors cannot devise themselves, we have an advantage over them," he said. "Find a contract that your competitor is hesitating to sign. Identify the legal framework that will enable you to operate in a country where your competitors do not want to go," he said.

Regulation creating ‘dramatic uncertainty’ – AMRAE

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