Risk deepened by global uncertainty amid fear of economic pressure

Rising legal risks make business environment harder to prepare for and could complicate portfolio management.

Risk House Of Cards @Pixabay.
Risks are accumulating for business, or so they feel. Is the situation safe for investor to carry on as before?

Businesses worldwide are facing a more volatile risk landscape with expectations of a more combative corporate environment. This is according to Clyde & Co’s Corporate Risk Radar report, which highlighted growing concerns among business leaders about a rise in disputes and legal exposure, due to a mix of geopolitical, economic and technological risks, which was released last week.

The report stated that 48% of global businesses anticipate an increase in disputes in the years ahead. These risks were no longer isolated; they overlapped, making them harder to manage.

This trend was also particularly significant for heavily regulated industries such as insurance and financial services, said the report, where legal compliance and operational continuity were closely intertwined. This is relevant to investors because a more fragmented, unstable world could affect diversification in portfolios if there has to be a pullback from certain sectors or places.

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