It’s a tough year ahead as the business world faces a storm of compliance and investigations

A wave of complex regulations and cross-border investigations will test the resilience of businesses around the world in the coming year; at the same time, limited resources expose vulnerabilities.

As many as 82 percent of global businesses fear being hit by a cross-border or multi-agency investigation this year, according to a new report by law firm Baker McKenzie.

Singapore (88 percent) and Hong Kong (85 percent) top the list of senior legal professionals in global business, due to their position as major regional hubs and a surge in whistleblowing activity in the Asia Pacific region.

While cybersecurity and tax have emerged as two of the top risks in disputes and investigations over the next 12 months, they are no longer just “technical” issues; they have become a major tool for government regulation and geopolitical influence.

Trade sanctions and export controls, ESG and employment are also key concerns, highlighting that, alongside pressing pressures, many organizations are addressing a wider variety of risk portfolios.

Concerns about trade policy were highest in Germany (84 percent) and the UK (84 percent), following a year of instability.

Global integration, once seen as a hedge against risk, is now a liability, with 79 percent of legal leaders citing tariffs, sanctions and export controls as the main drivers of disputes.

This comes as BCG warned that the era of ‘wait and see’ is over, as global policy uncertainty reaches an all-time high in 2025. Meanwhile Lloyd’s of London warned that potential geopolitical conflict could devastate the global economy, causing losses of $14.5 trillion (£11.89 trillion) over the next five years.

No money for legal spending

However, this comes after nearly 40 per cent of organizations admitted that their 2026 dispute budgets were insufficient to address the current risk landscape.

According to the Baker McKenzie report, organizations with limited resources find it difficult to investigate issues thoroughly, engage specialist counsel, or handle many cases simultaneously.

These constraints reduce flexibility and increase the risk of delayed or reactive decision making when disputes escalate unexpectedly.

Commenting on the findings, Sunny Mann, global chairman of Baker McKenzie, said, “We are in a paradox.”

“Organizations are increasingly connected globally, but operate in an increasingly fragmented and unpredictable geopolitical environment that is fundamentally changing the risk equation.”