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Understanding the Alarming Preparedness Gap in Today's Organizations

In a world that is increasingly characterized by geopolitical uncertainty, rapid technological advancements, and complex regulatory environments, business leaders are facing an uphill battle to remain compliant and secure. AlixPartners has recently conducted its 2025 Global Risk Survey, and the results released on April 30, 2025, reveal some startling statistics about the state of organizational preparedness across various sectors.

Based on responses from 1,000 senior executives involved in legal, compliance, and risk management functions worldwide, the survey highlights that more than 60% of organizations feel poorly equipped to tackle pressing issues, particularly in areas like data privacy, artificial intelligence (AI), geopolitical risks, and supply chain disruptions. This alarming trend underscores the urgent need for businesses to reassess their risk management strategies.

Key Findings from the Survey

1. Predicted Increase in Financial Crimes

The survey indicates that over 60% of executives believe financial crime is set to escalate within the next year. In response, 63% of organizations are investing in technology solutions to help combat this rise. However, only 44% of these organizations report that their technological investments are effective in detecting and analyzing risk factors. This discrepancy suggests a critical gap in the integration of technology in combating financial threats.

2. Struggle with Regulatory Changes

A significant finding from the survey indicates that the majority of organizations are inadequately prepared to navigate changes in regulatory frameworks. This lack of preparedness extends across various levels: 71% for international regulations, 64% for national regulations, and 58% for local regulations. Moreover, the ever-evolving sanctions landscape leaves only about one-third feeling confident in their ability to respond to potential changes.

3. Cybersecurity and Technology Preparedness

Over 60% of the surveyed organizations reported insufficient readiness to handle cybersecurity incidents and data breaches. In terms of adopting cutting-edge technology, 93% of respondents are implementing AI into their businesses, yet only 50% have established clear AI leadership or guidelines. This highlights a significant oversight in ensuring that technology implementation is paired with structured governance.

4. Litigation Outlook

Looking ahead to 2025, close to 70% of the executives believe corporate litigation will rise. Among those anticipating an increase of over 10%, about 60% plan to boost their budgets for outside counsel or increase collaboration with legal service providers. This forecast showcases a looming necessity for comprehensive risk management as businesses brace for potential legal battles.

Regional and Sector-Specific Insights

The survey encompasses inputs from professionals across regions, including the U.S., the UK, Western Europe, Asia Pacific, and Latin America. Major sectors represented include financial services, technology, and manufacturing—each presenting its own unique challenges and vulnerabilities. This diversity enriches the data and provides a well-rounded view of risk management practices globally.

Addressing the Preparedness Gap

As organizations grapple with various threats, Louis Dudney, the Global Leader for Investigations, Disputes, and Risk at AlixPartners, emphasizes the crucial role of technology in mitigating risks. He states, "Today's businesses confront numerous threats including economic downturns, fluctuating regulatory policies, geopolitical tensions, and AI-enhanced disruptions. The insights from this report will be invaluable for legal and compliance professionals in identifying and addressing key business priorities in the upcoming year."

In summary, the 2025 Global Risk Survey not only reveals daunting preparedness gaps but also underscores the pressing need for organizations to innovate and adapt. As businesses navigate this era of uncertainty, fostering a culture of risk awareness and proactive strategic planning is essential. AlixPartners' findings will contribute significantly to the dialogue on risk management, providing a roadmap for organizations striving to strengthen their defenses against a myriad of emerging threats.

For further insights from the survey, please visit AlixPartners. Stay tuned for continuous updates as the firm releases more detailed analyses focusing on specific industries and regions.