External Affairs - Legal and Ethics
Effectiveness and efficiency of operations
A. Litigation costs and settlements are properly authorized and minimized.
- Is senior management approval required for all settlements and legal costs over a specified amount?
- Is management required to periodically review the legal function to ensure effective and efficient operation, including assessing staffing requirements, considering need for temporary help or shared services, comparing costs of internal and outside counsel, evaluating charges from attorneys used to determine if all costs are necessary and negotiating rates with external counsel?
- Has management been engaged to review insurance coverage for liabilities under litigation and to request that in covered areas the carrier provide legal counsel?
B. Management recognized and evaluates significant litigation, claims, and assessments.
- Does management promptly notify legal counsel of any legal action filed against the University?
- Is management required to meet periodically with counsel and the board of directors to review legal matters that may affect the University?
- Have employees been informed of applicable legal, regulatory, and contractual requirements through training and correspondence?
- Have formal operating procedures been established for employees to follow when they uncover possible litigation, claims, or assessments?
- Is legal counsel engaged to review pending matters periodically and update the University's positions?
C. Contracts and agreements with outsiders are clear, fair, and legally enforceable.
- Is it required that the legal department prepare and review all significant contracts and agreements?
Compliance with applicable laws and regulations
A. The University complies with contracts, laws, and regulations.
- Is legal counsel consulted with regularly regarding compliance with legal and regulatory requirements, changes in laws and regulations, and other legal matters?
- Have goals been established concerning safe working conditions and the University's public image?
- Have all appropriate levels of management been informed about the exposure associated with pursuing risky lines of business or risky business strategies?
- Is executive management and the board of trustees informed of any risks that cannot
be effectively managed within the acceptable limits
defined by management and the board?