“The ability to bridge the gap between legal and business thinking is what sets a great GC apart.”

An interview with Juan Camilo Castro Salcedo, Deputy General Counsel, Head of Legal, Latin America at McKinsey & Company in Colombia.

What are the biggest external forces or trends currently shaping your role as General Counsel and how are you responding to them?

In Latin America, local General Counsels face a dynamic and complex landscape shaped by several external forces that have significant implications for legal professionals across the region. Among these, I would like to highlight two key trends that are particularly pressing today:

1. Geopolitical and Economic Volatility:

Geopolitical tensions and global economic shifts are creating ripple effects across Latin American economies, directly influencing the business environment. These dynamics are driving a surge in legal activity, particularly in areas such as mergers and acquisitions, vertical integrations, and operational consolidations, as companies seek to adapt to changing market conditions. At the same time, the economic pressures are pushing businesses to prioritise cost optimisation, which presents unique legal challenges. For instance, there is an increased focus on renegotiating or terminating contracts, streamlining operations, and managing potential disputes or litigations. General Counsels in the region are involved not only in navigating these complexities but also proactively identifying opportunities to mitigate risks and support strategic decision-making in this volatile environment.

2. Expanding Regulatory Landscapes:

Governments across the region are responding to economic and social challenges by introducing new and often more stringent regulatory frameworks. While these measures aim to address pressing issues, they also create significant operational hurdles for businesses. For example, evolving tax regulations are complicating cross-border operations for local economic groups, necessitating more sophisticated financial planning and compliance strategies. Additionally, there is a growing emphasis on protecting local markets through robust anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, as well as enhanced data privacy laws designed to safeguard consumers.

In regulated industries such as telecommunications, transportation, healthcare, and banking, we are witnessing a profound shift. Traditional players, burdened by complex regulatory requirements, are competing with agile new entrants that operate with leaner structures and fewer regulatory obligations. This creates a dual challenge: ensuring compliance while enabling the business to remain competitive in an evolving market. Local General Counsels in the region play a critical role in helping the organisation navigate these regulatory complexities, ensuring compliance while also identifying opportunities for innovation and growth.

To address these challenges, I recommend a proactive and strategic approach. This includes:

• Strengthening cross-functional collaboration: Partnering closely with business leaders, finance teams, and external advisors to align legal strategies with broader organizational goals.
• Investing in technology and innovation: Leveraging legal tech tools to enhance efficiency in contract management, compliance tracking, and risk assessment.
• Building resilience: Developing robust frameworks for risk management and scenario planning to anticipate and respond to regulatory and economic shifts.
• Fostering agility: Encouraging a culture of adaptability within the legal team to respond quickly to emerging challenges and opportunities.

Ultimately, the role as local General Counsel is not just about managing risks but also about enabling the business to thrive in a complex and ever-changing environment. By staying ahead of these external forces and trends, I aim to position the legal function as a strategic partner that drives value and supports sustainable growth.

How are you balancing the increasing demands of legal risk management with the expectation to drive business value and strategic insight?

Balancing the increasing demands of legal risk management with the expectation to drive business value and strategic insight requires a thoughtful and dynamic approach. For me, the key lies in designing and implementing a flexible legal operational model that integrates local expertise with the efficiency and scalability of a regional hub. This model allows us to address both localised challenges and broader regional opportunities effectively.

1. Leveraging Local Expertise for Tailored Risk Management:

Local legal experts are indispensable for understanding the unique regulatory, cultural, and business landscapes of each country in the region. Their deep knowledge provides a grounded and nuanced perspective on risks, enabling us to craft solutions that are not only compliant but also practical and aligned with how local companies operate. This localised approach ensures that we are addressing risks in a way that resonates with the realities on the ground, fostering trust and credibility with internal and external stakeholders.

2. Harnessing the Power of a Regional Hub for Efficiency and Scale:

While local expertise is critical, a regional hub offers the advantage of scale and cost-effectiveness, particularly for transactional matters and cross-border issues. By centralising certain functions, such as contract drafting, negotiation and management, development and licencing, and knowledge sharing, we can streamline operations and reduce redundancies. This hub model also facilitates the sharing of best practices and insights across the region, ensuring that we are leveraging the collective expertise of the entire legal team to address regional challenges strategically.

3. Enabling Collaboration Through Tools and Processes:

To make this dual model work seamlessly, it is essential to invest in the right tools and processes. Technology plays a pivotal role in connecting local teams with the regional hub, enabling real-time collaboration, knowledge sharing, and efficient workflow management. For example, legal tech solutions can help standardise processes, track different tasks and understand where the legal resources should be available, and manage risks more effectively, while also freeing up time for the legal team to focus on higher-value strategic initiatives.

4. Building a Strong Network of External Counsel:

A robust network of outside counsel is another critical component of this model. External advisors bring specialised expertise and an external perspective that complements the efforts of both local teams and the regional hub. By carefully selecting and managing these partnerships, we can ensure that we have the right support to navigate complex or high-stakes matters, while also maintaining cost discipline.

In summary, balancing legal risk management with driving business value requires a combination of local depth, regional scale, technological enablement, and strategic partnerships. By adopting this integrated approach, I aim to position the legal function as a proactive enabler of business success, rather than just a reactive risk mitigator.

What’s one lesson or insight from your in-house journey that you wish you’d known earlier and would share with a fellow GC today?

One of the most valuable lessons I’ve learned in my in-house journey is that the true value a General Counsel brings lies not just in providing sound legal advice, but in deeply understanding the business and aligning legal strategies with the company’s broader objectives. It’s about being more than a legal expert, it’s about being a strategic partner who can navigate the intersection of law, business, and leadership.

To truly add value, a GC must go beyond the legal framework and immerse themselves in the business. This means understanding the company’s operations, its internal dynamics, and the key drivers of success. It’s about knowing where the pressure points are, what the strategic priorities and challenges look like, and how decisions are made across different functions. This holistic understanding allows you to provide legal recommendations that are not only accurate but also practical, actionable, and aligned with the company’s goals.

Another critical insight that must be a value add of the in-house GC, is the importance of translating legal advice into a language that resonates with business leaders. Legal recommendations must be framed in a way that considers the audience’s perspective, experience, and priorities. This means presenting advice not just as a list of risks or legal jargon, but as a clear, concise, and solution-oriented message that empowers decision-making. The ability to bridge the gap between legal and business thinking is what sets a great GC apart.

For lawyers stepping into in-house roles or aspiring to become GCs, my advice is to prioritise understanding the company’s objectives and aligning the legal function with those goals. This alignment is the foundation for creating value. By positioning the legal team as an enabler of business growth – rather than a gatekeeper – you can help the organisation navigate risks while fostering innovation and achieving its strategic ambitions.

Finally, invest time in building strong relationships with leaders across the company. Collaboration and trust are essential for a GC to be seen as a true partner. By engaging with other functions, you gain valuable insights into their challenges and priorities, which in turn helps you tailor your legal advice to meet their needs effectively.

One last reflection…the role of a GC is not just about managing legal risks – it’s about driving business value in a way that creates a safer and more sustainable environment for growth. My advice to new GCs or in-house lawyers is to step out of the legal silo, immerse yourself in the business, and focus on aligning legal strategies with the company’s vision. This approach not only enhances your impact as a legal professional but also positions you as a trusted advisor and a key contributor to the company’s success.