I stopped treating the legal budget as a variable cost
of corporate financial losses from litigation are the result of decisions made to avoid legal fees. This figure represents the cost of ignoring advice at the beginning of a transaction. It shows that initial savings are usually illusions. These savings become expenses in a different year.
Cost of Prevention
Transparent
Cost of Mistake (Litigation/Fines)
Hidden & Multiplied
The CFO stood at the front of the conference room. He pointed to a screen. The screen displayed a bar chart. The chart showed the legal spending for the hotel group.
The bar for the current year was shorter than the others. It was lower than the previous year. A red arrow pointed toward the bottom of the slide. This arrow indicated a victory for the finance department.
The Silenced Expert
Shanika sat at the end of the long table. She was the only in-house lawyer for the group. She looked at her notebook. She did not look at the chart.
The CFO spoke with confidence. He said that the legal budget was now efficient. He stated that the firm had reduced its reliance on outside experts. He told Shanika to do the work herself.
Shanika had a letter in her bag. It was a draft for a
