In which scenario should a compliance professional establish attorney-client privilege?

Establishing attorney-client privilege is crucial in situations where compliance professionals and legal counsel need to communicate confidentially about sensitive matters that may involve legal risks or liabilities for the organization. In the scenario of illegal or unethical practices by Executive Management, the stakes are particularly high. The involvement of executive management indicates potential serious violations that could have legal repercussions for the organization as a whole.

In this context, communications about these practices would be protected under attorney-client privilege to ensure that the compliance professional can advise management effectively without the fear that this information will be disclosed to third parties or used against the organization in any way. The privilege allows for frank discussions about potential legal issues, strategies for compliance, and remediation steps without compromising legal protections.

On the other hand, scenarios involving employee violations outside their responsibilities, routine questions from staff, or billing errors do not typically rise to the level of legal risk that necessitates the establishment of attorney-client privilege. These matters can often be handled through standard compliance processes and do not require the same level of confidentiality and protection that attorney-client privilege affords.