New regulation is produced faster than most in house teams can keep up with it, businesses are expanding into new markets exposing them to novel and often extensive compliance obligations. How do you identify compliance obligations, then manage and monitor compliance effectively? What tools and systems can you deploy to avoid time consuming and reputation damaging breaches. This session will share case studies and examples of systems, approaches, policies, communication methods and tools used in practice to ensure cost effective risk management.

1. Multi Jurisdictional Compliance
23 October 2014

2. Welcome
Multi Jurisdictional Compliance
New regulation is produced faster than most in house teams
can keep up with it, businesses are expanding into new
markets exposing them to novel and often extensive
compliance obligations. What tools and systems can you
deploy to avoid time consuming and reputation damaging
breaches?
This webinar will share case studies and examples of
systems, approaches, policies, communication methods and
tools used in practice to ensure cost effective risk
management. How do you identify compliance obligations,
then manage and monitor compliance effectively

3. Polling Question 1
How important to you is multi-jurisdictional
legal compliance?
• Top Priority
• Medium Priority
• Low Priority

4. Welcome
• Speaker Introductions
– Stephen Hopkins, Partner & Head of Global
Client Development
– Graham Richardson, Partner & Head of
Eversheds Consulting
– Lee O’Connell, Consulting Director
– Claire Williams, Programme Office Manager

5. Agenda
• What is multi-jurisdictional legal compliance?
• Legal Risk or Legal Compliance?
– What’s the difference?
• The challenges
• Are you compliant? They weren’t…
• How do you identify your compliance requirements
– Systems, Methods & Tools
• Managing & Monitoring your compliance obligations
• Case Studies
• Q&A

6. What is multi-jurisdictional legal
compliance?
• Legal Compliance is the process or procedure to
ensure that an organisation follows, monitors
and manages relevant laws, regulations and
business rules within their operations
• Multi-jurisdictional compliance is when an
organisations operations are global and span
many diverse countries, each with differing and
challenging regulatory regimes

7. Legal Risk or Legal Compliance?
What’s the difference?

8. Legal Risk or Legal Compliance?
What’s the difference?

9. How do you identify your legal
compliance requirements?

11. The challenges
• Time and resource to manage the task
– Using a mix of qualified project managers and lawyers
to deliver the project more time and cost effectively
• Controlling a budget on what can be a very expensive task
• Reliable and trustworthy legal counsel across multiple
jurisdictions
– Even with 150 plus firms in our network we have to
ensure we use the right specialists with the right
expertise
• Controlling the quality and consistency of advice received
• Updating the advice on a regular basis
• Presenting the advice in a useful format

12. Example of Data Room

13. Example of Reporting

14. Polling Question 2
Do you feel that you adequately identify,
manage and monitor your global
requirements?
• Yes
• No

15. Are you compliant? They weren’t…
Walmart
A bribery scheme identified in 2011 that fuelled
the company's explosive growth in the Central
American country by paying officials to speed
up permits and ignore laws
Result: Past SEC and Justice Department penalties
are usually either 1% or 2% of annual sales
In 2012, this would have meant at least a $4.5
billion, or 77 cents per share, penalty for Wal-
Mart.
Investigations are ongoing and they have spent
$439 million in the last 2 years on investigations
Legal
Compliance
• Corporate
Governance
• Fraud and Theft
• Anti-bribery
and Corruption
• Anti-Trust and
Competition
Risk
• Cultural

16. Are you compliant? They weren’t…
HSBC

17. Are you compliant? They weren’t…
McDonalds
• In January 2012 McDonalds tried to promote its
brand and engage with customers via social
media across the globe
• McDonalds promoted the following trends
#meetthe farmers and #mcdstories with the
latter asking for positive dining experiences
in its restaurants
• Instead respondents joked about obesity and
dog food
Result: McDonalds pulled the campaign within 2 hours of
going live
Users were still tweeting using #mcdstories up to 10
days after it was removed
Legal
Compliance
• Cultural
• Brand
Protection
• Reputation

18. Managing & Monitoring your legal
compliance obligations
• Early warning systems
• Compliance hotline
• Regulator relationships
• EWRM
• Legal Risk Registers
• Compliance Risk Mitigation plan
• Compliance training
• Legal Compliance Audit processes

19. Systems, methods & tools
• Policies & procedures
• Facilitated identification workshops
• Control Risk Self Assessment
• Focussed questionnaires
• Compliance e-mail briefings
• Compliance advocates in-country
• Frequent monitoring and review
• Reporting and KPI’s
• Continual internal promotion of compliance

20. Systems, methods & tools

21. Case Study – Global Pharmaceutical
Organisation
The Challenge:
• Our new client had purchased rights to sell
products in 21 jurisdictions across Europe
• No presence previously in those countries and
no idea what compliance obligations
existed, and it was unknown if they were
operating compliantly
• They asked us to provide advice in 9 separate
areas of legislation in scope (including Tax,
HR, Environmental, IP, Data Protection,
Company Secretarial)
The Approach:
• Project Managed from the UK (Eversheds
Consulting, Partner supervision and subject
matter expertise support)
• Leveraging network of owned and
relationship firms
• Local counsel engaged to work to strict
guidelines in terms of time and costs
• Coordination of 378 different legal
documents, by one Project Manager, in 3
week period
The Outcome:
• Project delivered on time, and within budget
• Documentation loaded into secured Data
Room for client draw down
• Meeting the clients expectations regarding
complex billing requirements
Key Learnings:
• Having the right skills and knowledge in the
right jurisdictions
• Clear and consistent instructions
• Careful project management of costs

22. Case Study – Diversified Industrial
The Challenge:
• Our new client, a large diversified global
manufacturing company needed a full legal
audit review to understand their position in
respect of legal compliance across their
global Operations in 24 countries, with over
200 legal entities
• Three Month project
The Approach:
• The review was to focus on the compliance
areas of Operating license and permits,
Real Estate portfolio and Company
Secretarial information
• Compliance audit project managed from the
UK (Eversheds Consulting, Partner supervision
and subject matter expertise support) identified
over 250 entities
• Coordination/consolidation to 185 global
entities with GC based on our findings
• Advice collated in consistent report friendly
format and presented to client via secure
online data room
The Outcome:
• Project delivered to client requirements,
including change of scope
• Detailed audit spreadsheet providing
documentation and legal compliance detail and
information
• Copies of scanned legal documentation loaded
into secured Data Room for client draw down
• Guidance and advice consolidated into single
user friendly report with risk based RAG rating
and executive summary
Key Learnings:
• Clear and consistent instructions at outset
• Internal communications on project objectives
• Subject matter expertise
• Careful project management of documentation
and external counsel costs
• Secure storage of scanned documentation

23. Polling Question 3
Have you now changed your opinion on how
important to you is multi-jurisdictional legal
compliance?
•Yes
•No

24. For further information
Please contact:
• Graham Richardson – Head of Eversheds
Consulting: grahamrichardson@eversheds.com
• Stephen Hopkins – Head of Global Client
Development: stephenhopkins@eversheds.com

25. Upcoming SHINE events
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event
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• 18 December – SHINE webinar: Managing external costs
• For more information and to register:
http://www.eversheds.com/global/en/what/services/in-house-
counsel/events.page

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