NET WORK
EMERGING TRENDS SERIES TRENDS IN DOING BUSINESS WITH THE U.S. GOVERNMENT Liza Craig, Partner, Reed Smith
EXECUTIVE SUMMARY
EMERGING TRENDS SERIES NETWORK
Emerging Trends in Doing Business with the U.S. Government
Reed Smith’s Liza Craig BIHC recently spoke with Liza Craig, a partner in the Washington, D.C. office of Reed Smith. Craig specializes in providing strategic counsel to entities worldwide that receive U.S. federal funding via contracts, grants, or other agreements.
Q: W hat are the main trends you see around doing business with the U.S. government and what is driving these trends?
A: A focus on increased cybersecurity awareness;
the growing need for supply chain resilience; and increasing U.S. manufacturing capabilities. Companies are increasingly dependent on information technology systems, which creates increased vulnerabilities. Accordingly, cyber breaches increasingly result in compromised productivity, financial harm, and reputational risk. The increased focus on cyber resilience will drive change. The global supply chain is being impacted by events around the world. Sanctions on Russia, for example, will make the conduct of global business more difficult. Likewise, resources are being limited by the unavailability of raw materials in many sectors. Also, the increased scrutiny of business practices which might allow for human trafficking or rights violations will result in more stringent regulations. Businesses need to identify and remedy supply chain vulnerabilities to remain competitive. Regarding manufacturing capabilities, the U.S. government is looking to become less reliant on non-U.S. resources. More laws and regulations are being promulgated to bolster U.S. manufacturing, which will drive companies to make sourcing strategy changes.
Q: W hat are some best practices for GCs and companies as they consider these trends?
A: M ost GCs and senior managers are generally
aware of these trends; they are on everyone’s radar. However, they may feel challenged by the breadth and pace of change that is occurring. It’s critical to have sufficient knowledge of the changes that are happening in order to take a proactive approach. I see GCs working to ensure they have the latest information about legal and regulatory requirements that are emerging. The best organizations move from just understanding these changes to engaging a cross-functional team to review current business practices and efficiently close identified compliance gaps. Key to functioning in an environment of rapid change is continuously monitoring changes as they occur, and ensuring the compliance team is empowered to recognize the need to pivot and remain accountable for making the pivot a reality as opposed to just an aspiration.
Q: W hen should GCs look to outside counsel? A: O utside counsel can really help with team augmentation. GCs are juggling the legal functions for the entire company. Some niche areas—such as cybersecurity, supply chain resilience, and Buy America preferences, for example—may require the attention of a specialist in those areas. GCs can leverage outside counsel for their discreet focus on these issues, and for the perspective gained from advising multiple clients. Outside counsel is likely able to provide more fulsome advice and counsel, more quickly. Because we should expect to be operating in this dynamic environment for some time, the awareness and insights from outside counsel can be invaluable to GCs.
EMERGING TRENDS INTERVIEW SERIES
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EMERGING TRENDS SERIES NETWORK About the BIHC Network & Emerging Trends The Black In-House Counsel (BIHC) Network works with legal departments and law firms to advance Diversity, Equity, and Inclusion in the legal profession. We create content, events, networks, and professional development training for corporate legal departments and law firms. A key part of our mission is to showcase the talents of leading lawyers of color in top law firms to in-house legal departments. Emerging Trends features insights from leading partners of color on key trends shaping the business landscape over the next 12 months. Each Emerging Trends briefing provides concise information on what general counsel and boards need to know about and best practices in how to approach this topic.
BIHC is pleased to hear from the following Reed Smith partners in the Emerging Trends Series:
Elizabeth Brandon
Liza Craig
Partner
Partner
DALLAS Commercial Litigation
WASHINGTON, D.C. Global Regulatory Enforcement
Anthony Crawford
Stephanie Wilson
Partner
Partner
NEW YORK Insurance Coverage
PRINCETON, NEW JERSEY Business & Finance – Financial Industry EMERGING TRENDS INTERVIEW SERIES
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