CMS partner Dr Sam De Silva appointed to co-lead with China on proposed new ISO standard on management of legal risk

CMS technology and outsourcing partner Dr Sam De Silva has been appointed by the member countries of the International Standards Organisation (ISO) as the Co-Convenor of a Working Group for the development of a new ISO standard: Risk Management - Guidelines for the Management of Legal Risk (ISO 31022). Although there is general risk management standard, ISO 31000, specific guidance relating to the management of legal risk has not until this proposal ever been addressed at an ISO level.

The purposes of the new Standard includes:

• to define the concept of the legal risk and its management;
• to provide practical guidelines for organisations to manage and respond to legal risk;
• to provide practical guidelines for organisations to integrate legal risk management into their strategic risk management practices;
• to improve corporate governance; and
• to improve compliance.

The Standard is currently in working draft format and will be issued for pubic consultation in due course.

Dr De Silva comments, “I am pleased to have been appointed as Co-Convenor of this important ISO Working Group. Effective management of legal risk management is central to sound corporate governance and play an important role in strategic decision making as well as daily operations. The Standard is intended to be used for all kinds of organisations during their life cycles, and should encourage a more structured and consistent approach to the management of legal risks for the benefit of all stakeholders.”

Russell Price, Chairman of the BSI Risk Management committee, the UK’s National Standards Body comments “Our work is all about helping business better manage their activities in a volatile and uncertain world. The UK is delighted to be working with China on this new standard that will help business bring more clarity to international trade and provide stakeholders and users with good guidance that will enhance risk management guidance and help firms protect and develop the value they create.”

He added, “The UK is a world leader on standards and in the law and we are very happy Sam agreed to take on the responsibilities of leading the work. His knowledge, experience and work ethic are exceptional and working with the others involved I am sure the new ISO standard for the management of legal risk will really help transform the field.”