DENMARK Law and Practice Contributed by: Jacob Skude Rasmussen, Nicholas Rahui Webster Rømer and Lars Møller Haase, Gorrissen Federspiel
ance with data protection laws. In an environ- mental crisis, the legal challenges relate to envi- ronmental regulations, both in terms of whether the necessary mitigating steps have been taken, and in terms of the aftermath. For all crises, the liability of the company and its executive management and board of directors is a key focus point. 5.2 Dealing With Enforcement Authorities The enforcement authorities include the com- petent authorities on the given area. These include the Danish Environmental Protection Agency and the Danish Data Protection Agency. Even though these authorities cannot impose a legal liability – neither criminal nor civil – on the company and its management, the authorities’ supervision and statements are of importance when ruling on a civil liability. In terms of criminal liability, the competent authorities co-operate with the police. Depending on the specific area, the police authority is the National Special Crime Unit or the local police. 5.3 Co-Operating With Enforcement Authorities Companies co-operate with authorities regu- larly, implementing measures to address legal breaches through compliance programmes and corrective actions. 5.4 Litigation Risk Assessment Companies assess legal risks by evaluating potential liabilities and regulatory compliance. Key factors include financial impact and repu- tational damage. 5.5 Involvement of Lawyers Internal legal teams are involved early in the crisis management process. Depending on the gravity of the crisis, external counsel is usually
involved. External counsel is selected based on expertise and past performance. 5.6 Documentation and Evidence Preservation On a general level, most companies have pro- cesses in place for documentation and evidence preservation. In some legal areas, the relevant laws include requirements of preservation of documentation and regular (internal) audits. 5.7 Settlements In civil liability cases, settlements can be reached through negotiation and, in some cases, media- tion within the courts. In criminal cases, settlements with the police can be reached through a fixed penalty after which the company acknowledges criminal liability and accepts a fine of a certain amount. 5.8 Insurance Common insurance policies cover litigation and crisis-related costs, with companies working closely with insurers to manage claims. 5.9 Reputation Management Companies may measure the impact of cri- ses on reputation through stakeholder surveys and media analysis. Steps to rebuild reputation include public relations campaigns and stake- holder engagement. Companies may engage an external public affairs agency. 5.10 Mandatory Report Mandatory reporting requirements include timely updates to regulatory bodies, ensured through established communication protocols.
50
CHAMBERS.COM
Powered by FlippingBook