Risk Management’s Role In Corporate Defense

What Does Corporate Defense Mean in Your Organization?

Although the term corporate defense may be somewhat intuitively understood, its precise meaning can vary from individual to individual, and as a result its priority (both from organization to organization, and indeed within an organization) can also vary. Its precise definition can therefore vary depending on the circumstances in which it is applied. Examples of activities which use this term include areas such as legal, security, resilience, compliance, audit and, of course, risk management. Each of these activities shares the common high level objective of attempting to defend the organization, and could be said to represent different lines of defense.

For the time being let us consider corporate defense as representing an organization’s program for self defense or self-protection. By program of self defense we are of course referring to the structures, measures, mechanisms and processes in place within an organization that are aimed at defending the interests of all of its stakeholders. Stakeholders refer to all parties with a vested interest in the organization; this includes not only the traditional stakeholders such as the shareholders, but must include clients, business partners and of course the regulators. Equally importantly, however, is the organization’s line management, and in particular the staff of the organization, a stakeholder very often neglected. Managing corporate defense is therefore an extremely responsible station, as it involves the responsibility for adequately defending the interests of all of the stakeholders of an organization, both in terms of monetary and human implications.

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