The Association Between Corporate General Counsel and Firm Credit Risk

The role of the corporate general counsel (GC) has evolved over the past several decades. Traditionally, the GC served as an internal monitor via his/her gatekeeping functions to ensure that firms and their personnel acted legally and responsibly in business matters. In this sense, GCs are similar to other gatekeepers who are responsible for ensuring that firms engage in “best practices” (e.g., auditors, safety inspectors, etc.).

Over time, increases in business complexity and regulation have altered the GC’s responsibilities to include more advisory and entrepreneurial tasks. Internal counsel is now expected to expand the role of law and legal practice … Read more