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Flexible and Resilient Legal Departments are Essential to Managing Impending ‘Regulatory Tsunami’

| January 2, 2024
By Brian Roberts

Artificial intelligence, economic uncertainty, overextended resources, shrinking budgets, renewed governmental regulatory oversight … do these sound like headaches for your legal department? If so, you’re not alone. A recent survey of general counsel and chief legal officers revealed that 87 percent expect increased risk for their companies in 2024.

The General Counsel Report 2024: Tipping Points in Strategy, Technology, Adoption and Operations, by FTI Technology and Relativity, contains interview takeaways from 60 leaders worldwide serving as the general counsel or chief legal officer of their organizations.

Survey participants were asked to list their top five risk areas. More than half listed these concerns in their top five:

  • Regulatory compliance (92 percent)
  • Data privacy (80 percent)
  • Data protection (80 percent)
  • Implications of advanced technology (55 percent)
  • ESG (53 percent)
  • Increased number of disputes and investigations (50 percent)

One U.S.-based general counsel told the survey: “We are now in a regulatory tsunami given the uncertainty in the economy, geopolitical concerns and AI, which leads people to want to control what they can control.”

Why are legal department leaders worried about these risks and their ability to mitigate them? Survey respondents said their companies are consolidating work and overextending employees as they focus on growth.

One respondent said: We are globalizing our systems, but not adding new technology. We are not getting any increased budgets.”

General counsel always play a crucial role in managing risk while managing resources and supporting their client’s growth. In a time of increasing regulatory scrutiny, the criticality of that role is heightened. Building a flexible and resilient in-house team with proper technology and external partners is essential to navigating these choppy waters. Below are a few key initiatives to consider as you prepare for the year ahead:

  • Prioritize legal services: Align your legal workload with business impact rather than solely on partner requests. With limited resources, some less urgent projects may have to take a back seat.
  • Strategically diversify partner support: Take a strategic approach to your legal service providers, including law firms, technology partners, and litigation support providers. Leveraging lower cost options for different tasks helps reduce expenses and eliminates reliance on one provider. For example, utilize managed review attorneys for routine matters at a fraction of the cost and allow the higher priced attorneys to focus only on the high-level strategic matters (tip – you can contact me for help with this).
  • Negotiate alternative fee arrangements: Many firms will handle routine corporate governance and SEC compliance on a fixed fee basis at a reduced hourly rate. Utilize an RFP process to ensure you get the best arrangement.
  • Standardize high volume legal workflows: Leverage technology and contract workflows that allow business leaders to complete routine legal matters, like NDAs, on their own with standardized templates.

These are just a few ideas to consider, but every organization and department is different, and you need to tailor the structure of your department and outside resources to fit your needs. Ultimately, remember the old adage – work smarter, not harder. The regulatory tsunami may (or may not) appear but, regardless, you will never regret taking the time to build systems and procedures that you can leverage when the inevitable (stuff) hits the fan.


Brian Roberts is Chief Legal Officer at Array and the host of The Attorney Lounge, a podcast about life, law and business. Tune in wherever you get your podcasts, or click here, to hear compelling stories of accomplished attorneys, legal professionals and industry veterans sharing their inspiring personal stories and discussing the latest trends and ideas in the business of law.

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