[Seminar] The forefront of compliance programs ~ Compliance initiatives using data technology, etc. ~ Part 1
2023/9/27
What is preventive legal affairs?Explaining the differences between clinical legal affairs and strategic legal affairs, and specific examples of work content.
2023/9/29
When you think of being in charge of legal affairs for a company, it is easy to imagine that they are responsible for contract work and litigation, but ``strategic legal affairs'' that support a company's management strategy is also an important role.We will explain the differences between clinical law and preventive law, specific work examples and required qualities for strategic law, and will also introduce information that will help you advance your career and improve your skills in the future.
Strategic legal affairs refers to legal activities that support a company's management strategy.
Strategic legal services are legal services that proactively support a company's management and growth from a legal perspective.My job is to strategically manage legal issues and risks faced by companies, and plan and implement legal approaches in line with business strategies and goals.We provide legal advice and support to help you achieve your goals, including various transactions such as new business launches, overseas expansion, and M&A.You are expected to be involved in decision-making for corporate activities from a management perspective and contribute to maximizing corporate value by utilizing your legal skills.
Why strategic legal affairs are important
Strategic legal support is essential when actively developing a business.One of the reasons behind the increasing importance of strategic legal affairs is the recent globalization of the market.In order to approach overseas markets, it is essential to comply with the laws and regulations of the countries you are expanding into.This is because when doing business with overseas companies, it is necessary to comply with both domestic and international regulations.
The increase in mergers and transactions such as M&A is one of the reasons why strategic legal affairs is becoming more important.Particularly careful risk control is required for large-value transactions, and support from legal personnel is essential.In a complex and difficult-to-understand business environment characterized by unpredictable and fast-paced social trends, advances in technology, and the development of unknown business fields, there is a growing need for strategic legal functions within companies.
Differences between strategic legal affairs and clinical legal affairs/preventive legal affairs
When understanding the content of strategic legal affairs, "clinical legal affairs" and "preventive legal affairs" are contrasted.Strategic legal affairs, clinical legal affairs, and preventive legal affairs are all in the same field of corporate legal affairs, but the areas of work they handle are different.We will explain the business content of clinical legal affairs and preventive legal affairs, as well as the differences from strategic legal affairs.
What is clinical law?
Clinical legal services are legal services that directly lead to solutions when legal disputes or troubles occur in a company, and work to resolve existing legal disputes or troubles in a way that is as advantageous to the company as possible. It is your duty to do so.For example, we deal with all kinds of issues related to corporate activities, such as dealing with lawsuits and various complaints when being sued by another company for some kind of rights infringement, or conversely, when someone else sues for infringing on their rights.The aim is to resolve disputes in a manner that minimizes the damage to the company as much as possible.
What is Preventive Legal Affairs
While clinical legal work deals with emergencies, preventive legal work focuses on taking countermeasures during normal times.Preventive legal affairs constitute a large part of corporate legal affairs.My mission is to devise preventive measures to prevent the company from getting into legal disputes and troubles, and to control risks to minimize the damage when they do.With the trend of the times where compliance issues are becoming more important, the importance of preventive legal affairs is also increasing.
[Related article] What is preventive legal affairs?Explaining the difference between clinical legal affairs and strategic legal affairs, and the work content
Clinical legal services that are handled after a dispute has already occurred tend to be costly and risky because they are dealt with after the fact.Preventive legal services take measures to prevent disputes in order to minimize these costs and risks, but if preventive legal services are insufficient, there is a possibility that similar legal disputes will repeat.In situations where this preventive legal work is sufficient, strategic legal work aims to further enhance its effectiveness and maximize management effectiveness.
Characteristics of strategic legal affairs and specific work content
Characteristics of strategic legal affairs include support for management strategies, acquisition and utilization of intellectual property rights, and new transaction-related matters.The work content of strategic legal affairs involves activities that connect an organization's business goals and legal aspects to provide optimal legal strategies.Although specific tasks vary depending on the nature of the organization and industry, we will explain typical tasks.
Management strategy support and business content
First, we support business strategy.This is an activity that provides support and advice from a legal perspective to help companies achieve their medium- to long-term visions and goals.Specifically, the work includes the following:
- M&A (mergers and acquisitions) support
Due diligence on the target company is important in M&A (mergers and acquisitions) because the amount of money involved and the impact after implementation are large.Promoting smooth corporate restructuring and business succession is an important mission of strategic legal affairs.When dealing with M&A between companies, strategic legal support is essential in all situations, such as understanding and confirming a huge amount of materials such as contract documents.Those in charge of strategic legal affairs are required to have legal judgment from a management perspective.
- Support for overseas expansion
When conducting business overseas, you will be faced with various issues that do not exist in Japan's legal system, and you will need to take complex legal measures such as reviewing English contracts and investigating local laws and regulations.We investigate whether the region is suitable for business expansion in terms of the situation of competitors and all environmental aspects, and promptly implement various legal procedures.We provide legal services to support international transactions and overseas expansion while cooperating with domestic and overseas lawyers, including establishing local subsidiaries, hiring employees, and supporting management and sales departments from the legal side.
Acquisition and utilization of intellectual property rights and its business content
"Acquisition and utilization of intellectual property rights" is the legal activity to legally protect the intellectual property of a company, such as its technology and brand, and utilize it for business.Specifically, this includes acquiring patents and trademarks, and utilizing copyrights.In preventive legal affairs, the purpose of intellectual property is to protect it, but in strategic legal affairs, we support the appropriate management and protection of an organization's valuable assets, while proactively utilizing them to increase competitiveness as a company's strength. An attitude of doing so is required.
Consideration of risks for new transactions and new businesses
Finally, we will explain the risk considerations for new transactions and new businesses.An important task is to consider in advance the legal risks associated with new transactions and business development, and to carry out legal activities to minimize them.We are actively involved in new transactions and new businesses, and provide legal support.Specifically, this includes drafting and confirming contracts.
The purpose is to prevent legal troubles, and there are parts of it that are similar to preventive legal affairs, but strategic legal affairs involves understanding your company's business model and management policies, predicting and understanding legal risks, and addressing possible concerns. I have to investigate.We check whether there are any legal risks associated with new business partners or industries targeted for new business, and consider and devise methods to determine whether business development is possible.
[Related article] What is the business content of corporate legal affairs?Explaining specific jobs and required skills
Qualities of legal personnel required for strategic legal affairs
Considering the relevant work content and objectives, what qualities are required of a legal department member in charge of strategic legal affairs?We will explain the attitudes and skills you should have.
Possess advanced legal knowledge and management perspective
A managerial perspective is required in addition to a high level of legal knowledge.It can be said that people who think about things from a business perspective and can propose solutions for the company's growth strategy are suitable as strategic legal staff.
Highly specialized in their area of responsibility
In addition to having a high level of legal knowledge, strategic legal affairs officers are also required to have a high degree of expertise in the company they work for and the field they handle.Since the ability to respond flexibly even when complex and difficult issues arise, lawyers who handle corporate law or people with long legal experience in a specific industry are ideal candidates.
Able to express constructive opinions to management
If strategic legal personnel can provide candid opinions and constructive ideas to management, there is a greater possibility that the company will grow.In order to work closely with the management team while also being involved from an independent perspective, you must have accurate judgment backed by knowledge and the courage to express your frank opinions.
Success in strategic legal affairs requires skill improvement and consultation with lawyers
Strategic legal work is not only wide-ranging and high-level, but also varies depending on the company's environment and strategy, so it is not something that can be learned overnight.In order to carry out strategic legal affairs effectively, deep legal knowledge and extensive experience are essential.It is also important to have a high level of awareness to improve your skills every day.
We recommend the FRONTEO Legal Link Portal (FLLP) operated by FRONTEO to those in charge of strategic legal affairs.It is one of the largest platforms in Japan that connects companies in charge of emergency response, such as corporate legal affairs, intellectual property departments, management departments, and information systems departments, with lawyers and experts in Japan and overseas. You can watch wealth videos for free.Carefully selected instructional videos are perfect for efficiently improving your skills and updating your knowledge.
In addition to being a useful reference for improving your knowledge and experience, FLLP also has the advantage of allowing you to find a law firm that you can consult with regarding complex matters.In strategic legal affairs, which handles many complex cases, there are limits to the experience and knowledge of a single legal professional, and it is extremely difficult to cover all the latest legal knowledge on your own on a daily basis.You can also get appropriate advice from experts from an objective perspective.By collaborating with an external lawyer who has more specialized knowledge in the area you are dealing with, you will be able to obtain the latest information and will be able to come up with ideas that take advantage of each other's areas of expertise.To ensure you have a perfect strategic legal system, please take a look at the FLLP explanatory video.
