Looking out across the next decade to 2035, CLOs and GCs see geopolitical shifts, regional conflicts and instability in governmental regimes as their top macroeconomic risk concern. For legal executives, geopolitical risks are particularly difficult to manage because they are dynamic and unpredictable — with legal implications that can cut across compliance, contracts, dispute resolution and even corporate ethics. Legal leaders will obviously play a vital role advising boards and executive teams on adapting to future geopolitical shifts while ensuring regulatory compliance and protecting organizational reputation.  

Closely following geopolitical risk is economic conditions, including inflationary pressures. This macroeconomic risk, which also tops the leaderboard of near-term risks, reinforces the reality that legal leaders are deeply involved in enterprise-level risk management. They not only help organizations address any legal fallout from economic instability but also ensure contracts, workforce strategies and corporate governance structures remain resilient in the face of inflation, cost volatility and shifting capital markets.  

Near-term risk issues include:  

• Challenges in sustaining culture due to changes in overall work environment
• Ensuring privacy and compliance with growing privacy and identity protection risks and expectations  
• Ability to attract, develop and retain top talent, manage shifts in labor expectations, and address succession challenges  
• Ease of entrance of new competitors or other changes in competitive environment