New Study Reveals How GCs and CFOs Across Industries Manage Legal Risk and Value in an Uncertain Climate

Core Insights - The study by Burford Capital highlights the evolving strategies of senior legal and finance leaders in various industries regarding litigation spending and legal cost management, emphasizing a shift towards innovation and value creation [1][4][5] Industry Trends - Senior leaders in construction and mining anticipate the largest increases in litigation spending over the next five years, with the pharmaceutical and food sectors also expecting significant rises [5] - 75% of general counsels (GCs) and chief financial officers (CFOs) in construction and real estate prioritize increasing the certainty and predictability of legal costs, which is 25% higher than the average across all industries [5] - GCs and CFOs in pharma and life sciences are four times more likely than the average to consider reallocating $50 million or more within their businesses by financing litigation and arbitration [5] - Approximately 65% of senior finance and legal leaders in mining are likely to utilize monetization solutions in the next 15 years, indicating a trend towards immediate capital access through legal finance [5] - Half of the GCs and CFOs in the food industry expect litigation and arbitration spending to rise by over 25% in the next five years, and they are 54% more likely to have utilized legal finance compared to the industry average [5] - A third of senior leaders in the energy sector report having robust affirmative recovery programs, nearly double the average across all industries [5] Legal Finance and Technology - Leaders in healthcare, retail, and consumer sectors are more inclined to view legal finance as a means to significantly reduce overall litigation costs, reflecting their need for innovative cost-saving strategies [5] - Retail companies are the most likely to invest heavily in legal technology and AI in the coming year, indicating a trend towards modernization in legal operations [5] Resource Allocation and Future Outlook - Industries expecting the largest increases in litigation spending do not currently possess the largest budgets, suggesting a potential shift in litigation priorities and resource allocation among these sectors [5]