Report: 97% of General Counsel Think a Recession Could Be Near, but Few Say They're Prepared
Many general counsel think a recession could be on its way, according to a new report from Russell Reynolds Associates, but only 14% of legal exec respondents said they are "well prepared" to manage an economic downturn.
The Corporate Counsel article, “Report: 97% of General Counsel Think a Recession Could Be Near, but Few Say They're Prepared,” featured the firm's research, "Preparing for an Economic Downturn: Are General Counsels and Their Teams Ready?" The article is excerpted below.
Most legal executives think a recession could be on the horizon yet few have prepared themselves and their departments for a possible crash, according to a report released Friday.
In a survey of 72 legal executives based in North America at Fortune 500 companies, leadership advisory and search firm Russell Reynolds Associates found just 3% of the company’s top lawyers view a recession as “highly unlikely in the next 18 months.”
Despite most general counsel’s bet on a coming recession, only 14% of respondents said they are “well prepared” to manage an economic downturn. Only 1% of GCs said they were personally “unprepared,” with 24% slightly prepared and 61% somewhat prepared.
Cynthia Dow, the head of Russell Reynolds Associates’ legal, regulatory and compliance officers practice, said in an interview that GCs may be unprepared because of the length of the U.S.’s current economic expansion, with leaders hesitant to refuse further growth plans despite potential market warning signs.
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