how do you balance the legal/compliance needs of being part of a company thats heavily regulated vs the business needs to get deals done

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The moral of “the scorpion and the frog” is that it’s the FROG’S own fault that he got got.

Don’t let them sandbag you. You need to see the pipeline, force them to send things to Legal early, snitch on lazy business partners (hey folks, just checking if this is still in a priority for the quarter? No one has sent me anything yet, and I want to ensure I’ve set aside enough bandwidth for this).

Make it IMPOSSIBLE for them to dump something on you at the last minute or to blame Legal for “killing a deal”.

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Exactly. Messaging is key. It takes a lot of effort at times but it's worth working with your fave LLM to finesse messaging to (1) here's my guidance; (2) likelihood of risk (this is huge – anyone with an internet connection can identify risk; your legal judgment translates it into feasibility for the business); and (3) good luck making the business decision.

We lawyers often fire off guidance or opinions too quickly or flippantly and the business takes it as gospel that legal said no. Unless it's fraudulent or illegal, you need to serve up your clients what they need to make an informed decision. The receipts pay for themselves.

This is a challenge for us as each product line has varying risk tolerances and some business teams take more aggressive risk postures with what they propose. There is a perception that Legal is a road block when the reality is that there are business teams pushing the envelope too far.

If it’s gray, or there is no known enforcement actions I will propose ways to mitigate the risk and still approve the ask (like proper training on how to do xyz, or limiting the scope of use of certain assets or strategies). If it’s illegal, obviously not. There are things in my industry that can result in jail time despite being totally fine in other industries (i.e. paying kickbacks/referral fees), and I’ve had to drop “what you’re proposing is a felony criminal offense” in meetings before.

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PC1 sounds like the healthcare industry. Easy way to get business teams to shape up is discussing criminal penalties.

You explain the risk, make recommendations, and let the business make a decision. Just make sure the right level of person approves.

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Start by calibrating your guidance to the businesses risk profile. You need to talk to your GC, your CEO/COO, and/or a board about how much risk they want to take on in persuit of their goals. Then work with them to come up with a creative solution that keeps them within their risk profile while enabling their goals.

Also, make sure you're explaining the nuances of risk: is this legal or PR or financial risk? How likely is the outcome? How bad? What will the outcome lead to (i.e., if you do this and it goes wrong, how will that negatively impact their goals).

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