Beyond the Law

Beyond the Law KPMG’s Survey of Canadian General Counsel

May 15, 2013

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www.kpmg.ca/beyondthelaw

© 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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Introduction


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Introduction

KPMG’s Global GC Survey in 2012

Interviews of 320 GC in global corporations across 32 countries, including Canada

Canadian GC Survey in 2013

Written survey completed by 91 respondents

Respondents are GC in Canadian companies of mid-sized to large organizations


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Introduction

International companies represented in Canadian survey

The companies had operations in the US (50%), China (15%), Germany (13%) and Mexico (13%)

Representation from all sectors of the economy

Fifteen percent of respondents were from companies in:

Energy and natural resources (15%)

Financial services sector (15%)

Diversified (10%)

Technology (8%)

Telecommunications (7%)


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Leading the way GC’s reporting relationship and interaction with the Board


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Leading the way

GC Role is seen broadly as providing proactive advice on business issues Canadian GC have a seat on the Executive Committee or Board of Directors more often than GC outside of Canada 82% of Canadian GC sit on the Executive Committee or Board of Directors or report directly to these bodies

Relationship with executive management

“Tension between meeting commercial drivers and managing compliance will continue to be a growing challenge.”


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A delicate balance

The GC’s role in business strategy is growing The increase of Canadian GC involvement in forming business strategy is greater than GC outside of Canada There is a delicate balance between the role of GC as the legal conscience of an organization and the expectation to actively participate in proposed business strategies 80% of Canadian GC acknowledge there is tension between these roles while only 6% say such tension never exists

Number of respondents agreeing with the statements


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Ranking risk Reputation is key in Canada


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Ranking risk

Canadian GC recognize that the risk associated with business is increasing 14% more Canadian GC see an increase in risk compared to global GC

Number of respondents agreeing with the statement


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Ranking risk

Canadian and Global GC rank various risks in the following priority:


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Top risk mitigation strategies

“Better understanding of the business and the overall regulatory environment in which we operate.”

“Improved insight and understanding of our business and industry, and the changing global financial, regulatory, and political environment that impacts our business and operations.”

“Understanding the business, relationship skills, risk-based decision making.”


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The changing landscape of disputes Greater volume, increased complexity


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The changing landscape of disputes 41% of Canadian GC say there are now more disputes compared to five years ago. The expected trend in disputes by type are as follows:


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The changing landscape of disputes The expected trends in Canada in the conduct of disputes by type are as follows:


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Doing more with less Smaller budgets, heightened pressure


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Doing more with less

One-third of GC also believe that the amount spent on external law firms is expected to decrease in the coming year.

“There will be more pressure on resources given the regulatory regime and complexities.”

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


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