What are the differences in the nature of legal affairs, risk control and compliance?

The differences between the three positions of legal affairs, risk control and compliance are as follows:

1. Different scope of work

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 merger and acquisition and data collection. It also involves the management of litigation cases in various branches, the cooperation between large cases and law firms, the corresponding settlement of fees by law firms, and the management of case progress.

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

Compliance is responsible for contract review, later implementation, expiration renewal reminder, signed contract management, risk points in terms, analysis report of unfavorable factors, and update and maintenance of standard terms. When it comes to signing contracts, framework cooperation agreements, confidentiality agreements and the like with overseas customers, contracts and terms are mainly preferred.

2. The nature is different

Legal affairs generally involves the drafting, review and revision of contracts, the legal risks of the project structure and the litigation after the project is invested.

risk control is a department post that comprehensively evaluates the credit risk, liquidity risk and post-investment risk of the project and say 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 comply with the regulatory requirements, project processes and qualifications.

3. Different legal affairs

: In high-end companies, they are equivalent to in-house lawyers and tend to be legal; In low-end companies, it is equivalent to a public secretary and a typist;

risk control: more financial. In many cases, 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 "regulated industry", ensuring that the business operation of enterprises meets the regulatory requirements (such as securities companies, banks, insurance industry, etc.), and most of the work is to communicate with regulatory authorities.