What is the difference between legal affairs, risk control and compliance?

The differences between legal affairs, risk control and compliance are as follows:

1, different working ranges

Legal affairs is responsible for civil cases with relatively small litigation object and simple litigation relationship, legal opinions on various projects of the company, preliminary legal opinions on mergers and acquisitions and data collection. It also involves the management of litigation cases in each branch, the cooperation between big cases and law firms, the corresponding fee settlement of law firms and the management of case progress.

Risk control is responsible for the annual inspection of various certifications, such as ISO, supplier, customer management, project risk assessment, accounts receivable, etc., which is really biased towards finance and quality control.

Compliance is responsible for contract review, post-implementation, expiration renewal reminder, signed contract management, risk points in terms, adverse factor analysis report, and update and maintenance of standard terms. Signing contracts, framework cooperation agreements, confidentiality agreements and the like with overseas customers mainly focuses on contracts and terms.

2. Different in nature

Legal affairs generally involve contract drafting, review and modification, legal risks of project structure and litigation after project investment.

Risk control is a department post that comprehensively evaluates the credit risk, liquidity risk and post-investment risk of the project and says yes or no to the feasibility of the project.

Compliance Generally speaking, there will be more dealings with the regulatory authorities, and compliance opinions will be issued on whether the internal rules and regulations of the institution meet the regulatory requirements, whether the project process and qualifications meet the regulatory requirements, etc.

3, the bias is different

Legal affairs: in high-end companies, it is equivalent to internal lawyers, biased towards the law; In a low-end company, it is equivalent to a public secretary and a typist;

Risk control: more finance. Many times, risk control is done from the perspective of capital security. The risk control of large companies is generally held by people with financial background.

Compliance: generally speaking, legal background is not required, and the work is mainly to "supervise the industry" to ensure that the business of enterprises meets the regulatory requirements (such as securities companies, banks, insurance companies, etc.). ), and most of the work is to communicate with the regulatory authorities.