Organizations Are Least Prepared for Crises that Pose the Greatest Risk, According to FTI Consulting-Sponsored General Counsel Survey
A recent study sponsored by FTI Consulting reveals that organizations are least prepared for crises posing the greatest risk to their business. The survey, conducted by Economist Impact, canvassed 600 primary legal decision makers across North America, EMEA, and Asia Pacific. Key findings include:
- Nearly 30% of surveyed GCs cited reputational or operational crisis events among the top three risks and least prepared crises.
- Over two-thirds of organizations don't incorporate past crisis lessons into trainings and drills.
- About 60% of GCs reported increased involvement in crisis management strategy.
- Close to 70% of organizations lack a cross-functional crisis response team or pre-selected external advisors.
- More than half of surveyed organizations don't use AI or ML-powered modeling for crisis management.
The study highlights the need for better crisis preparedness and the evolving role of general counsel in navigating crises.
Uno studio recente sponsorizzato da FTI Consulting rivela che le organizzazioni sono meno preparate per le crisi che pongono il maggior rischio per il loro business. L'indagine, condotta da Economist Impact, ha intervistato 600 decisori legali chiave in Nord America, EMEA e Asia Pacifico. I risultati principali includono:
- Quasi il 30% dei GC intervistati ha citato eventi di crisi reputazionale o operativa tra i primi tre rischi e le crisi meno preparate.
- Oltre due terzi delle organizzazioni non incorporano le lezioni dalle crisi passate nei corsi di formazione e nelle esercitazioni.
- Circa il 60% dei GC ha segnalato un maggiore coinvolgimento nella strategia di gestione delle crisi.
- Poco meno del 70% delle organizzazioni non dispone di un team di risposta alle crisi interfunzionale o di consulenti esterni pre-selezionati.
- Più della metà delle organizzazioni intervistate non utilizza modelli potenziati da IA o ML per la gestione delle crisi.
Lo studio evidenzia la necessità di una migliore preparazione alle crisi e il ruolo in evoluzione del consulente legale nella gestione delle crisi.
Un estudio reciente patrocinado por FTI Consulting revela que las organizaciones están menos preparadas para las crisis que representan el mayor riesgo para su negocio. La encuesta, realizada por Economist Impact, entrevistó a 600 tomadores de decisiones legales principales en América del Norte, EMEA y Asia-Pacífico. Los hallazgos clave incluyen:
- Casi el 30% de los GC encuestados citó eventos de crisis reputacional u operativa entre los tres principales riesgos y las crisis menos preparadas.
- Más de dos tercios de las organizaciones no incorporan las lecciones de crisis pasadas en la formación y los simulacros.
- Alrededor del 60% de los GC informaron de un mayor involucramiento en la estrategia de gestión de crisis.
- Casi el 70% de las organizaciones carece de un equipo de respuesta a crisis interfuncional o de asesores externos preseleccionados.
- Más de la mitad de las organizaciones encuestadas no utilizan modelos potenciados por IA o ML para la gestión de crisis.
El estudio destaca la necesidad de una mejor preparación para las crisis y el papel en evolución del asesor legal en la gestión de las crisis.
FTI Consulting이 후원한 최근 연구에 따르면 조직들은 비즈니스에 가장 큰 위험을 초래하는 위기에 대해 가장 준비가 부족한 것으로 나타났습니다. Economist Impact가 실시한 이 조사는 북미, EMEA 및 아시아 태평양 지역의 600명의 주요 법률 의사 결정을 내리는 사람들을 대상으로 진행되었습니다. 주요 결과는 다음과 같습니다:
- 조사에 응답한 GC의 거의 30%가 명성 또는 운영 위기 사건을 가장 큰 세 가지 위험과 가장 준비 부족한 위기 중 하나로 언급했습니다.
- 3분의 2가 넘는 조직이 과거 위기 교훈을 교육 및 훈련에 통합하지 않고 있습니다.
- 약 60%의 GC가 위기 관리 전략에 대한 참여가 증가했다고 보고했습니다.
- 70% 가까운 조직이 교차 기능적인 위기 대응 팀이나 미리 선정된 외부 자문가가 부족합니다.
- 조사에 응답한 조직의 절반 이상이 위기 관리를 위해 AI 또는 ML 기반 모델링을 사용하지 않습니다.
이 연구는 더 나은 위기 준비의 필요성과 위기에서의 일반 고문의 역할 변화에 대해 강조합니다.
Une étude récente parrainée par FTI Consulting révèle que les organisations sont le moins préparées aux crises représentant le plus grand risque pour leur activité. L'enquête, menée par Economist Impact, a interrogé 600 décideurs juridiques clés en Amérique du Nord, EMEA et région Asie-Pacifique. Les résultats clés incluent :
- Près de 30 % des GC interrogés ont cité des événements de crise réputationnelle ou opérationnelle parmi les trois principaux risques et les crises les moins préparées.
- Plus des deux tiers des organisations n'intègrent pas les leçons des crises passées dans leurs formations et exercices.
- Environ 60 % des GC ont signalé une implication accrue dans la stratégie de gestion des crises.
- Près de 70 % des organisations manquent d'une équipe de réponse aux crises interfonctionnelle ou de conseillers externes pré-sélectionnés.
- Plus de la moitié des organisations interrogées n'utilisent pas de modélisation alimentée par l'IA ou le ML pour la gestion des crises.
L'étude souligne la nécessité d'une meilleure préparation aux crises et le rôle évolutif du conseiller général dans la gestion des crises.
Eine aktuelle Studie, die von FTI Consulting unterstützt wird, zeigt, dass Organisationen am wenigsten auf Krisen vorbereitet sind, die das größte Risiko für ihr Geschäft darstellen. Die Umfrage, die von Economist Impact durchgeführt wurde, befragte 600 Entscheidungsträger im rechtlichen Bereich in Nordamerika, EMEA und dem asiatisch-pazifischen Raum. Zu den wichtigsten Ergebnissen gehören:
- Fast 30 % der befragten GCs nannten reputational oder operationale Krisenereignisse unter den drei wichtigsten Risiken und den am wenigsten vorbereiteten Krisen.
- Über zwei Drittel der Organisationen beziehen keine Lehren aus vergangenen Krisen in Schulungen und Übungen ein.
- Etwa 60 % der GCs berichteten von einer erhöhten Beteiligung an der Krisenmanagementstrategie.
- Nahezu 70 % der Organisationen verfügen nicht über ein funktionsübergreifendes Krisenreaktionsteam oder vorab ausgewählte externe Berater.
- Mehr als die Hälfte der befragten Organisationen nutzt keine auf KI oder ML basierenden Modelle für das Krisenmanagement.
Die Studie hebt die Notwendigkeit einer besseren Krisenvorbereitung und die sich entwickelnde Rolle der Hauptanwälte bei der Bewältigung von Krisen hervor.
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More Than Two-Thirds of Surveyed Organizations Do Not Conduct Crisis Scenario Drills Based on Learnings from Past Events
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WASHINGTON, Oct. 15, 2024 (GLOBE NEWSWIRE) -- Organizations are least prepared for crises that pose the greatest risk to their business and are slow to implement lessons that would improve their ability to respond to future events, according to a recent study sponsored by FTI Consulting (NYSE: FCN).
Economist Impact’s survey on the role of the general counsel in a crisis canvassed 600 primary legal decision makers across North America; Europe, the Middle East and Africa (“EMEA”); and Asia Pacific. When asked to select crises that pose the greatest risks to their organizations, reputational or operational crisis events were cited among the top three out of 12 types of crises by nearly
More than two-thirds of organizations surveyed did not incorporate lessons from past crises into trainings and crisis drills. This gap will leave many organizations vulnerable to the impacts of a crisis or black swan event, particularly against a backdrop of a series of disruptive external events, such as cyber attacks and data breaches, macroeconomic shocks, political disruption and geopolitical conflicts.
“The reality today is that the number and variety of major corporate events and crises that companies can face has soared,” said Steven H. Gunby, President and Chief Executive Officer of FTI Consulting. “Example after example have shown that whether the company handles the crisis well or not, can be the single largest determinant of its market value over a five-year period, as well as its reputation. As a result, the general counsel is increasingly not only being asked to play the role of the chief legal officer but is also very frequently being asked to play the role of ‘chief line manager in charge of the crisis or event.’ Everyone is looking to them to lead.”
With the increasing frequency, complexity and unpredictability of crisis events over the past five years, about
Artificial intelligence (“AI”) or machine learning (“ML”)-based modeling can be particularly powerful in delivering comprehensive, granular and precise crisis impact assessments. Yet, more than half of surveyed organizations are not deploying AI or ML-powered modeling for crisis management. One possible reason is a gap in skills needed to run impact analyses and utilize technology solutions, which was cited by three in 10 GCs as one of the top five challenges preventing their organizations from being more prepared for crisis events.
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Lars Faeste, EMEA Chairman of FTI Consulting, added, “The stakes have never been higher when it comes to the navigation of crises and black swan events. The fact that this report reveals that a significant majority of organizations are not incorporating lessons from past crises into their contingency planning is a concern. Leadership teams often recognize what needs to be done but are yet to take timely and decisive action. Others lack the tools and resources that provide a comprehensive understanding of emerging risks. General counsel play a vital and ongoing role in helping their organization close these crisis preparedness gaps, enabling them to become more informed, agile and effective in managing future events.”
Additional key survey findings include:
- More than two-thirds of GCs in financial services, banking and insurance have expanded the scope of their early-warning monitoring and analysis exercises across strategic partners beyond legal, compared with less than half across all surveyed organizations.
- GCs in manufacturing are more involved in managing crises and their impacts (
72% ) than their peers in financial services, banking and insurance (68% ), IT/technology, media and telecommunications (64% ), energy, oil and gas (63% ), retail (62% ) and healthcare and life sciences (54% ). - Nearly
40% of respondents said they did not have a contingency plan in place for a cyber attack or a supply-chain failure.
For additional findings, view the full report: Turbulent waters, trusted anchors: The general counsel’s evolving role in navigating crises.
Demographics and Methodology
FTI Consulting sponsored the research for Turbulent waters, trusted anchors: The general counsel’s evolving role in navigating crises, which was conducted by Economist Impact. This survey-based study explores the perspectives of primary legal decision-makers on the nature of the crisis landscape today, their organization’s crisis preparedness, and how their roles have evolved in managing these events.
The survey field work was conducted online and by telephone between April to May 2024. It covered a total of 600 primary legal decision-makers across North America (
About FTI Consulting
FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. With more than 8,000 employees located in 33 countries and territories, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges and make the most of opportunities. The Company generated
FTI Consulting, Inc.
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Investor Contact:
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FAQ
What are the top risks organizations are least prepared for according to the FTI Consulting survey?
How many organizations incorporate lessons from past crises into their training and drills?
What percentage of general counsels reported increased involvement in crisis management strategy?
How many organizations have a cross-functional crisis response team or pre-selected external advisors?
What percentage of organizations are using AI or ML-powered modeling for crisis management?
