Worldwide, regulatory or government changes is the most concerning issue keeping chief legal officers and general counsel up at night, the ACC CLO 2018 Survey reported.
WASHINGTON (January 24, 2018) — Worldwide, regulatory or government changes is the most concerning issue keeping chief legal officers (CLO) and general counsel (GC) up at night, and the proportion of CLOs who rank proactively addressing legal and regulatory trends as a top area where they add value has increased 38 percentage points since 2013, the Association of Corporate Counsel (ACC) CLO 2018 Survey, released today, reported.
The professional stature and influence of the CLO's position has grown in light of the prevalence of geopolitical events and heightened regulatory landscape, according to the survey. The CLO reporting structure is an important indicator of influence on the company and the CLO's role in creating a corporate culture that reinforces ethics and integrity.
Among CLOs who report directly to the CEO, 61 percent work with the CEO, executive team, and board of directors on strategic initiatives — nearly double the percentage among those who do not report to the CEO. Sixty-five percent of CLOs who report to the CEO stated the executive team "almost always" seeks their input on business decisions, and 81 percent regularly attend board meetings — signifying a greater likelihood that business plans take into account legal and regulatory risks.
"With so many geopolitical issues, the challenges facing businesses today are much more complex, and boards are facing greater accountability and pressure to understand their company's appetite for risk," said Veta T. Richardson, president and CEO of ACC. "Thus, a well-positioned CLO and legal team can solidify a corporate culture that prioritizes ethics, compliance, and other legal risk considerations. The survey's findings further emphasize that 2018 is the age of the CLO."
Taking the pulse of 1,275 CLOs and GCs in 48 countries, the ACC CLO 2018 Survey also found that data breaches and the protection of corporate data is the fastest growing area of concern as 36 percent of CLOs rated it extremely important in the year ahead, compared with 19 percent in 2014. The education, retail, and healthcare sectors reported the highest percentages of data breach activity, while respondents in the United States, Canada, and the Asia Pacific region were more likely to report that a patent troll targeted their company.
Other notable findings in the ACC CLO 2018 Survey include:
- Contract management is the top area where CLOs use technology for efficiency. Nearly half of all respondents (47%) anticipate their company will be engaged in a merger or acquisition in the year ahead.
- The majority of CLOs globally (56%) expect an increase to their department's overall budget, compared with 43 percent last year. Inside spend allocation rose from 53 percent to 56 percent.
- Sixty-three percent of law departments use a combination of hourly billing rates and alternative fee arrangements, compared with 42 percent who utilized blended rates in 2016.
- Complex litigation is the most common type of work outsourced to a law firm, followed by patent services and ediscovery.
For more information on the ACC CLO 2018 Survey and to purchase the full report, visit www.acc.com/closurvey.
About ACC: The Association of Corporate Counsel (ACC) is a global legal association that promotes the common professional and business interests of in-house counsel who work for corporations, associations and other organizations through information, education, networking, and advocacy. With more than 43,000 members in 85 countries employed by over 10,000 organizations, ACC connects its members to the people and resources necessary for both personal and professional growth. By in-house counsel, for in-house counsel.® For more information, visit www.acc.com and follow ACC on Twitter: @ACCinhouse.
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