Erica Chan is an accomplished International Executive and Chief Legal, Governance, Corporate Affairs Officer with 24 years of PQE and is currently overseeing Legal, Communication and Corporate Affairs, Sustainability, Group Technical, Risk management and Loss Prevention functions. She excels in corporate governance, risk assessment, and compliance, leading major acquisitions and cross-border transactions across Asia, Europe, and North America, while managing diverse high-performing regional teams.

In a recent conversation with Global Woman Leader Magazine, Erica emphasized the importance of retail companies proactively future-proofing their governance models and adapting the evolving role of legal teams. She discussed navigating regional governance disparities, transforming risk perception, and leveraging risk assessment to pursue new markets and partnerships.

In a world where the regulatory landscape can shift with a single geopolitical event, how can retail companies not just react, but future-proof their governance models? Could you foresee governance becoming an anticipatory function rather than a reactive one in the next 5 years?

Today, with speedy change in the regulatory environment due to geopolitical events, retail companies evolve governance models from being reactive to the other extreme-becoming anticipatory. Governance functions are increasingly proactive, and that is best exemplified by collaboration between risk management teams and various business units on review and forecasting of what might go wrong for the organization. This will mean that the company keys on these risks to strategically focus efforts and implement measures to address critical issues, such as product supplies being hindered by sanctions. Going forward, the compliance team would then work with relevant departments to mitigate these challenges, which may include identifying alternative sourcing options. This forward-thinking approach is very necessary for sound risk management and helps companies be more prepared and responsive in the face of the unexpected so their operations are safeguarded and made more resilient within an ever-changing regulatory landscape.

As omnichannel strategies blur the lines between traditional retail, e-commerce, and media, how do you see the role of legal teams evolving? Can legal frameworks remain agile enough to keep pace with technological disruption, or do they risk becoming bottlenecks for innovation?

Lawyers should embrace a customer-centric approach and engage in omnichannel business process to gain a comprehensive understanding of the entire process. This necessitates an agile and open mindset, focused on continuous learning and the identification of legal issues. For example, when personal data is collected, it is imperative to conduct personal information assessments and establish appropriate terms and conditions and measures for applications and online platforms. Recognizing the potential of new media to drive business growth is essential, as is recruiting talent in areas such as data, privacy, cybersecurity, and technology to enhance the traditional retail experience. Furthermore, leveraging AI and innovation is critical for improving our operations.

Beyond mitigating risks, how can companies turn their sustainability and compliance efforts into strategic levers that attract consumers and investors alike, especially in markets where regulatory standards are still developing? Could compliance itself become a brand value?

Regarding sustainability, while many Asian countries lack mandatory requirements, some have environmental measures, like reducing single-use plastics in Hong Kong. Despite the absence of strict regulations, companies should emphasize sustainability to demonstrate responsibility to customers and investors. This commitment shows they are addressing climate issues and operating with a long-term, sustainable vision. For many businesses, sustainability is a key strategic pillar.

On compliance - this is fundamental to business operations, especially for retailers. Ensuring that food and premises are safe and clean builds trust and provides value to customers. Upholding high standards with suppliers and doing the right thing - acting responsibly as both a retailer and employer helps attract customers, employees, and investors. Compliance can indeed become a brand value by highlighting the company’s commitment to ethical and safe practices.

When closing high-value cross-border transactions, how do you navigate the ethical dilemmas that arise from varying governance standards across regions? Do you foresee a time when global companies will establish internal ethical benchmarks that exceed local legal requirements?

Legal requirements and their enforcement can vary significantly across regions, especially between Western and Eastern countries. However, there are fundamental principles that companies must consistently uphold, such as anti-corruption, customer safety, food and health safety, and avoiding conflicts of interest. Establishing internal ethical and compliance benchmarks that exceed local legal requirements can help navigate these ethical dilemmas and ensure consistent standards globally.

As public demands for corporate transparency grow, especially in retail, how do you balance the need for openness with the strategic necessity of maintaining control over your company’s narrative? Do you see a future where brands might have to relinquish narrative control entirely to build trust?

Promoting openness does not necessitate losing control over a company's narrative. It's crucial to actively manage and review the narrative to ensure its accuracy and alignment with the organization’s strategic objectives and core values. While transparency is increasingly demanded by the public, brands should approach this balance thoughtfully. Maintaining narrative control allows companies to effectively communicate their mission and values while fostering trust with stakeholders. I believe that most brands will continue to prioritize retaining narrative control rather than relinquishing it entirely, as this helps safeguard their reputation and reinforces their commitment to transparency.

In a business landscape where unpredictability is the only constant, do you believe the concept of ‘risk’ itself is transforming? How can companies shift from seeing risk assessment as a defensive mechanism to leveraging it as an offensive strategy to explore new markets and partnerships?

The idea of 'risk' is changing in an increasingly fluid business environment. In general, companies finally recognize that risk assessment is not a defensive tool, but also a strategic one in the pursuing of new markets and partnerships. Through proactive investigation into both financial and nonfinancial factors, such as geopolitical influences, public relations, ESG, governance, and the like, organizations can have a wide-ranging, holistic view of opportunities and threats. Evaluations of this sort prior to entering new relationships make businesses more informed in their decision-making, and in that respect, place them better and more prepared to negotiate uncertainties and exploit emerging prospects.

With global governance often set by headquarters far removed from local market realities, how can retail companies ensure that governance standards are flexible enough to adapt to local disruptions without compromising global integrity?

When setting global governance standards, headquarters should gain direct experience in developing markets and consult local teams to understand the realities. It's important to strike a balance in standard assessments while maintaining core principles, such as anti-corruption, avoiding conflicts of interest, and implementing a whistleblowing system.