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T H E R I S K L A N D S C A P E
T O P R I S K S A S I D E N T I F I E D B Y B O A R D D I R E C T O R S A N D G E N E R A L C O U N S E L
(% respondents identifying each risk as expected to have a high or very high impact on their organisations)
Our initial survey was conducted just as the COVID-19 pandemic was emerging as a major global threat. Since then we have consulted in-depth with General Counsel and Board Directors to trace how their perceptions of the risk landscape have been changing as the crisis evolves and how this will impact their future strategies and actions. The key components that have shaped the risk landscape in recent years- namely globalisation, the growth of complex and digitised supply chains, AI and automation and an unpredictable geopolitical environment – have not changed, but they are all now viewed through the lens of an epidemic that has fundamentally altered our assumptions.
In the short-term legal teams are focused on analysing contracts, reviewing force majeure clauses and terminations and suspension rights. They are also focused on the short-term impacts of production interruptions and disrupted supply chains, with one eye looking ahead to what implications the current experiences will have for future risk management. Longer-term, it is abundantly clear from our conversations that many of the risks that were expected to have an impact over the next five to ten years have been abruptly brought into sharp focus.
eg IT disruption, data loss, new technology
Technological
50 %
62 %
Organisational
eg talent management, succession planning and managing change
44 %
58 %
Political
eg Brexit, Trump presidency,political extremism, trade tariffs, sanctions, supply-chain disruption, new trade deals
50 %
57 %
Reputational
eg operational, governance or quality risks
44 %
56 %
Market competition
eg new entrants, new business models, market consolidation
44 %
54 %
Economic
eg currency volatility,USD trading reliance / credit risk
28 %
44 %
COV I D - 19 I S TOP OF EVERY AGENDA AND I BET THAT VERY F EW BUS I NES SES HAD TH I S I N THE I R R I SK ANALYS I S . THE B I GGEST R I SK TO THE BUS I NES S I S SOMETH I NG YOU HAVEN ’ T THOUGHT OF.
Regulatory
eg increasing burden, compliance with bribery and corruption legislation and modern slavery regulations
39 %
44 %
Environmental
eg climate change, natural disasters, energy restrictions
28 %
34 %
Societal
eg cultural / attitudinal shifts / labour / public health / #MeToo
28 %
24 %
General Counsel, Financial Services
General Counsel Board
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