Surge in Business Disputes Expected Amid Worsening Risk Environment, Says Clyde & Co’s Corporate Risk Radar

Key findings from the report:

• 45% of respondents expect an increase in disputes due to difficult economic conditions and a more complex risk landscape

• 59% of business leaders are actively preparing for investor actions as scrutiny intensifies

• 46% of businesses are reconsidering or changing where they operate in future due to geopolitical risk

• 45% anticipate a rise in employee claims and disputes driven by return-to-office mandates

• 64% of businesses say rising regulatory and compliance obligations are materially impacting investment and growth plans for 2025

Businesses responding to a complex web of risks are increasingly readying themselves for a wave of disputes and conflicts, Clyde & Co’s annual Corporate Risk Radar report has warned.

The survey of more than 400 business leaders from around the world examines the biggest risks facing organisations today, including the threat of geopolitical risk, ongoing economic volatility, and rapid technological change. It finds that many of these risks have converged to create new operational, market, and legal challenges that businesses are now working to address and mitigate.

45% of respondents said they are bracing for a surge in disputes because of tough economic conditions and the complex risk landscape.

59% of business leaders said they are actively preparing for investor actions as scrutiny on their operations increases. Respondents said investors were increasingly assertive, with legal and reputational measures being used to hold companies accountable for perceived mismanagement or failure to meet expectations.

Meanwhile, an increase in conflict is likely to be seen in the workplace environment too. 45% of those surveyed this year said they expect to see a jump in employee claims and disputes due to the implementation of return-to-office mandates.

James Roberts, Partner, London, said: “Economic pressures are triggering disputes where once there may have been a more pragmatic renegotiation. Contractual tensions are particularly visible in sectors like professional services, construction, and technology, where clients are dealing with increased scrutiny around scope, delivery obligations, and pricing clauses.”

46% of businesses surveyed this year said they are reconsidering or changing where they operate in future due to the threats posed by geopolitical risk.

Ben Knowles, Partner, London said, “We are seeing more regionalisation, driven by geopolitical tensions and supply chain issues. Companies are realising that the globalisation that has been the bedrock of their operations for the last 20 years is being dismantled.”

Respondents said that the ongoing challenge of regulatory compliance was delaying investment, with 64% of businesses saying that obligations were materially impacting their growth plans for 2025.

Sam Tate, Partner, London, said: “Previously, regulated companies were the main focus, but this has expanded over the last few years to include businesses not typically considered highly regulated. This expansion covers property transactions, asset holding, and areas such as failure-to-prevent laws, which now apply similarly across all sectors.”

Other key findings in this year’s report include:

• 36% of respondents said climate change is now a second order concern for organisations until it has a significant, sustained and material impact on their operations
• 46% of respondents said that diverging ESG regulations in the US and Europe are negatively impacting their businesses
• Despite an increase in the number of high-profile cyber-attacks in 2025, 77% of respondents told us they are now more confident in their ability to defend against and respond to cyber-attacks and breaches than they were five years ago
• 83% of General Counsel respondents told us they play a more strategic role in risk management compared to five years ago, with increased complexity re-shaping their jobs

Commenting on the overall findings from this year’s report, Eva-Maria Barbosa, Partner, said: “This year’s report is the most comprehensive we have undertaken, and it paints a picture of risk that is increasingly complex, connected and challenging. Geopolitical upheaval is a game-changer, impacting every other risk we measure. Navigating this environment is tough, requiring heightened diligence, patience and resilience. But there are opportunities for organisations able to see through the volatility, to rapidly adapt. Corporate Risk Radar 2025 shows us that taking action is an imperative.”