A new study shows how general counsel and chief financial officers in various industries manage legal risks and value in an uncertain environment.

Leading specialists in legal and financial departments at the highest level from various industries outline different approaches to future budgets related to legal expenses and artificial intelligence in this field. However, they are unanimous in their pursuit of innovation and the search for new ways to create value.

Burford Capital, a leading international financial and investment firm focused on the legal sector, presents a new study that analyzes how legal and finance executives across various industries approach issues of litigation costs, legal expense management, and risk, as well as optimizing the value of the legal department. In the 15 years since Burford's founding, the world has changed significantly, especially after the global financial crisis. Economic, political, and social changes have impacted different sectors in various ways, including their legal functions. This study demonstrates how leaders in legal and financial departments have responded to external and internal factors by adapting their legal strategies to successfully navigate the ever-changing landscape and where they intend to direct their resources in the future.

The data for the study was collected through online interviews with 400 highly skilled lawyers and finance professionals from ten different industries, allowing for a deeper understanding of their decision-making processes in the context of commercial disputes, as well as cost and risk management within their legal departments. The industries considered include construction, real estate, consumer goods and services, energy, food production, healthcare, manufacturing, mining, pharmaceuticals and life sciences, retail, as well as transportation and supply chain management.

The main findings of the study are as follows:

• Leaders of legal and financial departments in construction and mining expect the most significant increases in litigation costs over the next five years, followed by the pharmaceutical and food industries.
• Three out of four general counsels (GC) and chief financial officers (CFO) in construction and real estate stated that their main priority is to increase predictability and confidence in legal expenses, which is...25%exceeds the average indicators across all sectors.
• General counsels and CFOs in pharmaceuticals and life sciences indicate the possibility of redistribution four times more often than the industry average.$50 millionand more into other business areas through the financing of legal disputes and arbitration.
• About two-thirds65%%) of senior financial and legal executives in the mining industry noted that over the next 15 years, they are likely to take advantage of monetization, which is a legal financial solution that provides instant capitalization by advancing expected rights on pending claims or resolutions.
• Half of general counsels (GC) and CFOs in the food industry are counting on an increase in their organizations' spending on litigation and arbitration by more than25%within the next five years.
• At the same time, they are in54%In cases, it is mentioned that they used legal financing, which also exceeds the average indicators across all models.
• Every third high-profile financier and lawyer in the energy sector is aware of the existing active recovery programs, which is almost twice the average across all sectors.
• General counsels and CFOs in the healthcare, retail, and consumer goods sectors are more likely to assert that legal financing can play an important role in reducing overall litigation costs.
• Financial and legal executives in retail are most likely to state that they plan to actively invest in legal technology and artificial intelligence over the next year.
• The industries whose representatives predict the highest future litigation costs currently do not have the largest budgets, indicating a significant shift in priorities regarding legal matters in certain sectors.

Christan Bogart, the CEO of Burford Capital, noted: "Latest data from BurfordIt is confirmed that general counsels and CFOs across various industries are exploring new ways to create value for their businesses, which is at the heart of our focus as we strive to help clients rethink legal services as an investment rather than a cost center.

Burford was founded after the global financial crisis of 2009, and we are particularly aware of the value of our capital and expertise in challenging times.

Recent results are based on an online survey of senior financial professionals and corporate lawyers from companies in ten different industries with annual revenues exceeding$50 millionconducted in the USA, UK, Australia, Singapore, Germany, France, Spain, Switzerland, Sweden, the Netherlands, and the UAE. All survey participants hold positions that require knowledge of litigation costs and decision-making.

About Burford Capital:

Burford Capital is a leading international finance and investment firm specializing in law. Its areas of expertise include litigation financing and risk management, asset recovery, and a wide range of legal financial and consulting services. Burford is publicly traded on the stock markets of New York and London, working with companies and legal institutions worldwide from its offices in New York, London, Chicago, Washington, Singapore, Dubai, Sydney, and Hong Kong.