CCI staff share recent surveys, reports and analysis on risk, compliance, governance, infosec and leadership issues. Share details of your survey with us: editor@corporatecomplianceinsights.com.
Massive gap appears between GCs and executives
A gap is emerging between how general counsel (GCs) and executives at companies view the legal team’s contributions to business objectives, according to a Thomson Reuters Institute survey.
In the report, 86% of GCs said they believe legal departments significantly contribute to business goals. Only 17% of C-suite executives said the lawyers were significant contributors to those same goals, with 42% of executives saying legal “contributes little or nothing at all.”
Nearly 50% of GCs reported staffing constraints with the survey saying that this may be a primary factor hampering legal departments from helping to enact business goals.
The survey also revealed that GCs are expected to link risk prevention to wider business goals. Almost 70% of GCs rated talks with internal business units as their most valuable source on emerging risks.
Legal departments no longer see AI just as an efficiency tool, the survey also found. Instead, legal departments are strategically integrating AI across all aspects of their work, with nearly half of corporate legal teams having access to generative AI tools. Mentions of AI as a strategic priority by corporate legal teams have doubled in the past year, the survey said.
The survey report came from 2,300 interviews with corporate general counsel.
Less than 30% of corporate boards regularly talk about AI
Only 26% of corporate boards talk about AI at every board meeting, according a Protiviti survey of board directors and senior leaders.
Some boards’ lack of discussion about AI is at odds with the return on investment enterprises can see if they regularly address AI at the board level, according to the survey, which included 772 board members and executives. In 63% of organizations reporting high ROI on AI, every board meeting agenda includes discussions of the technology. Comparatively, 13% organizations reporting low ROI on AI have reliable board discussion about the topic.
“AI is fundamentally changing how organizations compete and create value,” said Joe Tarantino, president and CEO of Protiviti, a business consulting firm. “Boards that consistently challenge management on strategy, risk, measurement and governance are better positioned to ensure AI delivers value while operating within appropriate guardrails.”
CFOs mostly consider revenue, not culture in M&A deals
Corporate leaders are still determining M&A deal success through the finance lens despite growing acknowledgment that cultural factors are also relevant, according to a recent survey by professional services firm RGP, which found that 58% of financial leaders consider revenue growth a primary indicator of success.
The survey of more than 120 chief financial officers (CFOs) across sectors found that the top three metrics used to determine post-acquisition value realization were all financial — revenue growth, cost synergies (46%) and cash-flow improvement (33%).
However, while 81% of surveyed CFOs said intangible assets like talent, brand and IP are important, just 18% said their organizations were effective at protecting them.
