Key Risks Facing General Counsel and Boards
Corporate governance is becoming increasingly complex as organizations navigate economic uncertainty, cybersecurity threats, regulatory changes and emerging technologies. General Counsel (GCs) and board directors are under growing pressure to manage these risks while supporting sustainable business growth.
Effective board risk oversight, corporate governance and enterprise risk management require stronger collaboration between legal teams, senior management and directors.
Balancing Business Growth with Economic Uncertainty
Economic volatility continues to influence corporate strategy and boardroom decisions. Organizations must evaluate market opportunities while preparing for financial disruptions and changing business conditions.
A 2025 survey of 165 General Counsel and corporate directors at US public companies revealed that approximately two thirds continued prioritizing growth initiatives despite economic uncertainty. Meanwhile, 32% adopted a cautious approach while awaiting greater market clarity.
These findings highlight the importance of maintaining financial resilience without abandoning long term business objectives.
Boards should focus on strategic planning, financial stability and operational flexibility to respond effectively to unexpected challenges.
Cybersecurity and Leadership Risks Demand Greater Attention
Economic uncertainty is only one concern facing corporate boards. Cybersecurity incidents, leadership transitions and operational disruptions can have equally serious consequences.
The survey identified cybersecurity breaches as a leading concern for General Counsel. Directors also considered cyberattacks a major threat but placed greater emphasis on the unexpected departure of a CEO or another critical executive.
These priorities demonstrate why organizations need comprehensive risk management strategies covering information security, leadership succession and business continuity.
Regular risk assessments and clearly defined responsibilities can help boards identify vulnerabilities before they become significant business challenges.
Strengthening Collaboration Between General Counsel and Boards
General Counsel play an important role in corporate governance by advising directors on legal exposure, regulatory obligations and organizational risks.
However, the survey revealed opportunities to strengthen communication between legal departments and boards.
Only about one third of directors reported receiving extensive cybersecurity support from their General Counsel. Additionally, 28% indicated that such support was minimal or absent.
These findings suggest that organizations should establish more structured communication between legal teams, cybersecurity professionals and board committees.
A coordinated approach allows directors to receive relevant information and make informed decisions.
Improving Board Oversight of Artificial Intelligence
Artificial intelligence presents significant opportunities for organizations but also introduces challenges involving data privacy, regulatory compliance and accountability.
According to the survey, 60% of directors reported receiving minimal or no support from their General Counsel regarding AI oversight.
As AI adoption expands in 2026, boards need greater visibility into how these technologies are implemented, monitored and governed.
General Counsel can contribute by supporting responsible AI policies, assessing legal implications and helping organizations establish appropriate governance controls.
Making Enterprise Risk Management More Effective
Enterprise risk management is essential for identifying threats and protecting organizational interests.
However, approximately one third of directors surveyed indicated that their General Counsel had limited involvement in board discussions concerning enterprise risk management.
Effective enterprise risk management software and board governance technology can support better risk reporting, centralized documentation and more informed discussions.
Organizations should encourage regular collaboration between legal teams, risk officers and directors to strengthen oversight and accountability.
The Role of Digital Governance Technology
Digital governance platforms can improve how boards access information, monitor decisions and coordinate responsibilities.
Secure board portal software enables directors to review confidential documents, manage meetings, track actions and maintain organized governance records.
AI capabilities can also support meeting documentation, information retrieval and governance reporting while maintaining appropriate human oversight.
By adopting suitable technology, organizations can improve board communication and strengthen their ability to respond to evolving governance challenges.
Conclusion
The responsibilities of General Counsel and corporate boards continue to expand as organizations face growing economic, technological and regulatory risks.
Strengthening collaboration, improving risk visibility and adopting secure digital governance solutions can help organizations build greater resilience.
Ultimately, effective corporate governance depends on informed decision making, clear accountability and consistent communication across leadership teams.
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