From CompliNEWS | Financial Service Intelligence Watch
Compliance readiness key to navigating disputes landscape in 2025
Baker McKenzie‘s Global Disputes Forecast 2025 places regulatory compliance at the heart of risk mitigation strategies as global businesses brace for a complex year ahead. The report, based on insights from 600 senior in-house counsel, highlights a growing mismatch between the speed of regulatory change and the ability of organisations to keep pace. In fact, the most significant barrier to litigation preparedness is the inability to monitor and implement compliance changes effectively—underscoring the need for a proactive compliance culture supported by adequate resources, training and external expertise.
Across sectors, the legal and reputational fallout from cybersecurity breaches, AI misuse, ESG missteps and tax errors are forcing businesses to rethink their compliance infrastructure. Notably, 70% of respondents concerned about cyber risk fear regulatory investigation and fines, while over 50% identify gaps in reporting across jurisdictions. ESG compliance is now integrated into corporate strategy, and compliance teams are under pressure to anticipate scrutiny over greenwashing, labour practices and supply chain integrity. For financial institutions, healthcare providers and technology firms, compliance isn’t just a tick-box—it’s a defence against litigation, class actions, and even shareholder action.
The report recommends moving away from static compliance frameworks and embracing agile, sector-specific compliance models. These should include robust internal controls, real-time risk dashboards, and tailored training across jurisdictions. Businesses with stronger compliance maturity were better able to anticipate litigation risk, leverage AI for dispute resolution, and navigate complex tax and data regimes. As global enforcement tightens, the role of the compliance officer has never been more critical in shaping the resilience and integrity of the organisation.