De-risking Litigation Exposure: Conflict Management as an Integral Part of Business Administration
In today’s interconnected global economy, multinational corporations are increasingly exposed to a wide array of litigation risks. These risks, ranging from class action lawsuits to regulatory enforcement, contractual disputes and intellectual property infringements, pose significant threats to a company’s operations, reputation and financial health. As highlighted in our recent research, litigation has transitioned from being […]
Leonor Díaz-Córdova is a Managing Director at FTI Consulting and Adjunct Professor at IE University. This post is based on her FTI Consulting memorandum.
In today’s interconnected global economy, multinational corporations are increasingly exposed to a wide array of litigation risks. These risks, ranging from class action lawsuits to regulatory enforcement, contractual disputes and intellectual property infringements, pose significant threats to a company’s operations, reputation and financial health. As highlighted in our recent research, litigation has transitioned from being merely an operational concern to becoming a strategic priority for the highest levels of corporate governance, such as boards and executive committees.
The Decade of Disputes report by FTI Consulting confirms that litigation risk is now firmly on the boardroom agenda. This heightened focus is due to a number of factors ─ an increase in the frequency and materiality of litigation, the rise in class actions and escalating regulatory scrutiny across jurisdictions worldwide. Notably, over 59% of business leaders report an increase in litigation over the past year, with 52% expressing concern about potential future litigation.
Given the potential for substantial disruption, companies need to rethink their approach to managing litigation risk. This is where conflict management emerges as an essential component of business administration.
