It is fair to ask why those resources and expertise were absent earlier in the risk-management processes, when more diligent attention to fundamental principles could have helped companies and their shareholders avoid serious reputational and financial harm.
I would like to talk about the role the legal community can play in ensuring that the important basic elements of risk management and internal controls are effectively addressed on a proactive basis, rather than after problems arise. First I will describe some problems we have recently seen at financial institutions.