Infographic

Law department priorities shift toward guardianship

This infographic features the changing priorities of corporate law departments, reasons these priorities have changed over the past few years, and resources to learn more about the state of the corporate law department.

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  • Law department priorities shift toward guardianship

    2023 law department strategies

    Law department priorities fall into four categories: protect, enable, efficient, and effective. While cost control is still of utmost importance, efficiency and technology are receding, likely because law departments have made huge strides in efficiency in recent years and have incorporated that work into business as usual. Regulation and compliance have expanded in importance, as has risk management, showing that law departments are focusing on their role as guardians of the enterprise.

    Effective:

    • Service
    • Quality of service
    • Talent

    Enable:

    • Business as usual
    • International
    • Business change
    • Mergers and acquisitions

    Efficient:

    • Cost control
    • Efficiency
    • Technology

    Protect:

    • Risk management
    • Disputes
    • Data & cyber security
    • Regulation and compliance

    Source Thomson Reuters 2023

    Global law department priorities

    Compliance emerges as the top legal department priority globally. The Asia-Pacific region and mainland Europe are driving this change. Commercial legal advice and cost control remain the top two priorities in the U.S. and the UK. Companies outside the U.S. and the UK may see stricter regulations or work across jurisdictions, making their regulatory compliance requirements more complex and challenging.

    United Kingdom
    (including $60+ cos)

    • Commercial legal advice
    • Cost control
    • Compliance
    • Efficiency
    • Risk & litigation mitigation

    Global:

    • Compliance
    • Risk & litigation mitigation
    • Cost control
    • Commercial legal advice

    Canada
    (including $601):

    • Commercial legal advice
    • Compliance
    • Efficiency
    • Risk & litigation mitigation
    • Cost control

    Mainland Europe

    • Compliance
    • Risk & litigation mitigation
    • Commercial legal advice
    • Efficiency
    • Cost control

    Asia Pacific:

    • Compliance
    • Risk & litigation mitigation
    • Cost control
    • Commercial legal advice

    United States
    (including $50M+ cos.)

    • Cost control
    • Commercial legal advice
    • Efficiency
    • Risk & litigation mitigation
    • Compliance

    Number of responses: Global average (339), Asia-Pacific (68), mainland Europe (64), full UK (41), full U.S. (248), full Canada (60)

    Source Thomson Reuters 2023

    How priorities have shifted over time

    Global regulation increases have given rise to the need for a strong compliance function within the legal department. Compliance shot from number five on the list of priorities in 2019 to number one in 2022. Top global compliance concerns include ESG regulation, changing securities regulations, geopolitical tensions, anti-money laundering efforts, cybersecurity, digital economies, data governance, and more.

    2019

    Day-to-day advice
    17%

    Proactive risk management and litigation prevention
    17%

    Cost control
    17%

    Improve efficiency and streamline processes
    16%

    Compliance and regulatory requirements
    15%

    2022

    Compliance and regulatory requirements
    22%

    Proactive risk management and litigation prevention
    21%

    Cost control
    19%

    Provide more commercially impactful advice
    18%

    Improve efficiency and streamline processes
    12%

    Learn more about the state of the corporate law department.

2023 state of the corporate law department

This newly published report examines risk management, litigation mitigation, and cost control

Download report