China in-house interview: Managing risks, step by step

The second step is control during the process. We control legal risks within bearable limits in the event that such risks cannot be eliminated, and do everything possible to prevent such risks from materialising. As business development and operations cannot be suspended because of risks, so the function of the legal affairs department is to analyse, determine and hint at the legitimate and justified direction and approach of business development and operations. This is done in accordance with legal and national policies on the basis that legal risks are identified and revealed, and to build up the legal road access to business and operations.

The third step is to follow up afterwards. This involves dealing with lawsuits and unexpected legal risks. For example, when legal risks have materialised, we can file or defend lawsuits for and on behalf of the Company, and we can deal with the unexpected legal risks. In other words, we are capable of managing legal risks as well as minimising or avoiding such risks and recovering losses.

How many lawyers work in-house at Ping An and how do you see this changing over the next 12 months?

As at the end of March 2010, Ping An has a total of about 200 in-house lawyers.

The basic idea about the development of Ping An Group is to have integrated financial services led by insurance and to make use of integrated financial services to further facilitate the accelerated development of the insurance business. The cross sales at the front desk will certainly trigger cross backstage support services. Legal services and people working in the legal profession all face new changes. For example, the legal services of a single company turn into legal services provided across companies working in collaboration; professional legal staff turn into all-round
legal staff.

Our staff must expand their expertise, enhance their professionalism and strengthen their teamwork in order to achieve comprehensive development on the integrated financial platform provided by Ping An, and to add value for themselves.

What are the main areas of focus for Ping An's in-house team?

The work in the legal affairs department of Ping An involves property insurance, life insurance, banking, trusts, securities and asset management, and all other areas of the Company's business operations.

Meanwhile, the legal affairs department of Ping An has been substantially involved in all mergers and acquisitions, new issues of shares or bonds, strategic cooperations, asset restructurings of the Company, as well as such projects as the introduction of strategic investors, domestic and overseas listings, and the acquisitions of Shenzhen Commercial Bank and Shenzhen Development Bank.

To what extent do you outsource work and to which law firms?

Some of the major lawsuits and arbitration cases of the Company or major non-litigation projects that need to be handled are often done so by our in-house team. This can be throughout the litigation process, conducting due diligence at the subject location, or providing on-the-spot legal services at any time. However, due to the limitations of posting in-house legal staff, we are unable to satisfy the above requirements. Therefore, the Company will employ external lawyers and appoint them to provide the above services.

The following law firms often cooperate with the Company: Commerce & Finance Law Offices, Jun He Law Offices, King & Wood PRC Lawyers, Zhong Lun Law Firm, DeHeng Law Offices and AllBright Law Offices (local); Sullivan & Cromwell, DLA Piper and White & Case (international).