Being an in-house lawyer means you need to grasp and navigate risks for your company. It’s already complex when dealing with risks you’re trained to handle as a lawyer—like contractual terms, intellectual property, and regulatory issues.
However, when your company is exposed to fast-moving global and geopolitical forces (which is the case for most companies these days), the complexity of your job reaches a new level.
A few years ago, we thought things would improve once we got past Covid-19. But the post-pandemic world has ushered in a wave of changes, challenging businesses and legal departments to adapt. We now face a hybrid and remote work environment, artificial intelligence, legal issues around DEI and ESG initiatives, stringent regulations on Big Tech, and criminal prosecutions of business leaders.
Geopolitical risks are hard to overlook, with legal departments facing challenges such as the Ukraine conflict, escalating issues in the Middle East, and threats to the Panama Canal trade route due to drought. A warming planet and growing border tensions between the US and Mexico add to the concerns.
The Economist dubbed 2024 as the biggest election year in history, with 76 countries holding elections and a crucial US election taking place.
Companies that effectively respond to crises are those that anticipate and plan for them. This preparation is not exclusive to large companies—smaller companies, especially, are vulnerable to geopolitical events. If no one is strategizing for handling geopolitical risks in 2024 within your company, the responsibility likely falls on you as the in-house legal leader.
Collaborate with relevant departments to plan for crisis management. While HR, finance, and business operations are vital participants, every team with a stake in the company should have a voice in this planning exercise.
Be inclusive and open to seeking external expertise to stay informed about areas that impact your work. Start by identifying key company stakeholders worldwide and understanding where they are located.
Uncover all your stakeholders’ locations, including employees, contractors, suppliers, and raw material sources. This exercise can reveal the complexities of a global company, especially in today’s remote work environment.
Learn about key aspects of your business that may not typically grab your attention. This exercise is not just about risk—it’s a chance to enrich your understanding of your business.
After identifying geopolitical risks, assess their potential impact on your company. Consider both threats and opportunities, and create a risk matrix to prioritize risks for mitigation or exploitation.
Your work may prompt the business to make changes like engaging new suppliers or entering new markets. While you may not solve every hypothetical risk, having contingency plans in place can provide a head start during crises.
Stay informed about your exposure to geopolitical events and be prepared to evaluate options swiftly when a crisis hits.
Rob Chesnut consults on legal and ethical matters, having served as the general counsel and chief ethics officer at Airbnb and as a Justice Department prosecutor for over a decade.
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