decade. The same is true globally, and this impacts Canadian
companies more and more as they continue to move into
new and emerging markets. Perhaps more important is the
increasing level of regulatory enforcement. Obvious and very
public examples of growing regulatory enforcement in Canada
and elsewhere include anti-money laundering and bribery and
corruption.
Risks associated with technology are considered by GC to
be significant in Canada (number 3 risk) and globally (number
2 risk). The growing concern related to data and privacy
breaches through loss of electronically stored information,
breached IT security and cybercrime is an understandable
and very real concern. The value of information obtained and
stored by companies has never been more appreciated and,
therefore, more at risk. Like many other risks, the reputational
exposure from a data breach can be severe and litigation can
be expected after a loss of data.
Managing disputes
Disputes have always been an occupational hazard of
operating a business. Not surprisingly, disputes are a major
part of the GC’s job. This is true in Canada as well as globally.
For example, in Canada, 41% of GC thought that there
are now more disputes compared to five years ago and
32% believed that the volume of disputes was unchanged.
Globally, this trend is repeated with 51% of GC believing that
the number of disputes will increase in the next five years.
When looking at the types of disputes an organization
faces, there are few indications of relief from the onslaught
of litigation. In Canada, employment, regulatory and
contractual disputes are seen by most GC as increasing.
More significantly, regardless of the issue, GC in Canada see
little likelihood that the number and impact of disputes will
decrease (see chart).
Increasing
Unchanged
Decreasing
51%
49%
47%
37%
29%
28%
26%
26%
26%
23%
11%
45%
49%
44%
59%
68%
70%
66%
67%
74%
73%
89%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Employment
Regulatory
Contractual
Consumer claims
Fraud
Competition/anti-trust
Intellectual property
Investment or
transaction related
Tax related
Securities
Professional negligence
Expected change in the frequency of disputes
© 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
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At Risk
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Volume 7, No. 1