## Tough Year Ahead as Businesses Face Compliance and Investigation Storm
A wave of complex regulations and cross-border probes is set to test the resilience of businesses worldwide in the coming year, compounded by resource constraints that expose critical vulnerabilities. A staggering 82 per cent of global businesses fear being hit by cross-border or multi-agency investigations in 2026, according to a new report by law firm Baker McKenzie.
The report highlights that Singapore (88 per cent) and Hong Kong (85 per cent) anticipate the highest risk, attributed to their roles as major regional hubs and a surge in whistleblowing activity across the Asia Pacific region.Cybersecurity and tax are no longer simply “technical” issues,but have become primary tools for government regulation and geopolitical leverage. Trade sanctions, ESG concerns, and employment practices also rank among the top concerns, indicating organizations are navigating a diverse and expanding portfolio of risks.
This comes as global policy uncertainty reached an all-time high in 2025, with the era of ‘wait and see’ declared over by Boston Consulting Group (BCG). Lloyd’s of London has warned that a potential geopolitical conflict could devastate the global economy, possibly triggering $14.5 trillion (£11.89 trillion) in losses over the next five years.
### No money for Legal Spend
Compounding these challenges, nearly 40 per cent of organizations admit their 2026 disputes budget is insufficient to address the current risk landscape. Limited resources hinder thorough investigations, engagement of specialist counsel, and effective management of multiple cases, reducing flexibility and increasing the risk of reactive decision-making.
Sunny Mann, global chair of Baker McKenzie, emphasizes a critical paradox: “We find ourselves in a paradox. Organisations are more globally connected than ever, yet operating in an increasingly fragmented and unpredictable geopolitical surroundings that is fundamentally altering risk calculations.”
The increasing complexity of global integration is shifting from a risk hedge to a liability, with 79 per cent of legal leaders citing tariffs, sanctions, and export controls as primary drivers of disputes. This trend underscores the need for businesses to proactively address these evolving challenges and bolster their compliance and investigation capabilities.