What's Happening?
A recent survey by Norton Rose Fulbright highlights a significant decline in organizations' preparedness to handle litigation risks, particularly in the context of a shifting regulatory landscape under the Trump administration. The 2026 Litigation Trends Survey, which involved 400 U.S. general counsel and in-house litigation leaders, revealed that only 29% of respondents felt 'very prepared' to address litigation, a drop from 46% in the previous year. This decline is attributed to the transition between administrations, which often brings changes in regulatory agendas and enforcement priorities. Additionally, resource constraints, such as shrinking in-house litigation teams and reduced hiring for law departments, have contributed to this trend.
Cybersecurity remains a dominant threat, with data breaches on the rise and federal oversight decreasing, necessitating proactive governance to address compliance gaps.
Why It's Important?
The decline in legal preparedness poses significant risks for organizations, particularly as they navigate a complex regulatory environment. The shift in administration has introduced uncertainty, impacting how companies manage compliance and litigation risks. Cybersecurity threats, identified as a major concern by 38% of organizations, require robust strategies to mitigate potential breaches and protect sensitive data. The role of HR in shaping a culture of compliance is crucial, as it can influence employee behavior and reduce the frequency of cybersecurity incidents. Organizations must prioritize training and collaboration between HR and IT to effectively manage these risks. The findings underscore the need for companies to adapt to changing regulatory landscapes and invest in resources to enhance their legal and compliance capabilities.
What's Next?
Organizations are expected to focus on strengthening their legal and compliance frameworks to better address the challenges posed by regulatory changes and cybersecurity threats. This may involve increasing investment in training programs for HR and IT departments to foster a culture of compliance and improve incident response capabilities. Companies might also explore partnerships with external legal counsel to supplement in-house resources and ensure comprehensive risk management strategies. As the regulatory landscape continues to evolve, businesses will need to stay informed about new policies and enforcement priorities to remain compliant and mitigate potential legal exposures.
