Tough year ahead as businesses face compliance and investigation storm
A wave of complex regulations and cross-border probes is set to test the resilience of businesses worldwide in the coming year; at the same time, resource constraints expose vulnerabilities.
A staggering 82 per cent of global businesses fear being hit by cross-border or multi-agency investigations this year, according to a new report by law firm Baker McKenzie.
Topping the list for senior legal professionals at global businesses were Singapore (88 per cent) and Hong Kong (85 per cent), which were attributed to their positions as major regional hubs and to a surge in whistleblowing activity in the Asia Pacific region.
While cybersecurity and tax have emerged as the top two risks for both disputes and investigations over the next 12 months, they are no longer just “technical” issues; they have become the primary tools for government regulation and geopolitical leverage.
Trade sanctions and export controls, ESG, and employment also ranked among the top concerns, emphasising that, alongside urgent pressures, organisations are addressing a diverse portfolio of risks more broadly.
Concerns regarding trade policy are highest in Germany (84 per cent) and the UK (84 per cent), following a year of instability.
Once seen as a hedge against risk, global integration is now a liability, with 79 per cent of legal leaders citing tariffs, sanctions, and export controls as the primary drivers of disputes.
This comes as BCG warns that the era of ‘wait and see’ is dead, as global policy uncertainty reached an all-time high in 2025. While Lloyd’s of London warned that a potential geopolitical conflict could devastate the global economy, triggering $14.5 trillion (£11.89 trillion) in losses over the next five years.
No money for legal spend
However, this comes on the heels of nearly 40 per cent of organisations admitting their 2026 disputes budget is inadequate to handle the current risk landscape.
According to Baker McKenzie’s report, organisations with limited resources struggle to investigate issues thoroughly, engage specialist counsel, or manage multiple cases simultaneously.
These constraints reduce flexibility and increase the risk of delayed or reactive decision-making when disputes escalate unexpectedly.
Commenting on the findings, Sunny Mann, global chair of Baker McKenzie, said, “We find ourselves in a paradox.”
“Organisations are more globally connected than ever, yet operating in an increasingly fragmented and unpredictable geopolitical environment that is fundamentally altering risk calculations.”