GCs Face Mounting Pressures in 2025 Amid Regulatory and Geopolitical Turmoil

The general counsel's job is set to get tougher, with regulatory changes, geopolitical turmoil, and sweeping technological changes continuing and intensifying into 2025.

GCs are increasingly tasked with crisis management, navigating geopolitical risks, regulatory challenges, and technological disruption.
79% of U.K. GCs expect budgets to rise in 2025, reversing prior budget cuts and reflecting the growing scope of their roles.
New regulations like Europe’s DORA amplify the need for robust ICT risk strategies and cybersecurity accountability.
Direct reporting lines to CEOs and participation in executive teams enhance GCs’ effectiveness and impartiality.

General counsel (GCs) are entering 2025 with increasingly complex portfolios. From managing geopolitical risks to ensuring compliance with rapidly evolving regulations, GCs face a broadening array of responsibilities, according to a Law.com report.

“As crisis events become more frequent, the role of GCs has expanded to include crisis management responsibilities, with the task of planning to make sure that their organizations survive the uncertainty provoked by globalization, geopolitics, climate issues and technology,” said José Piñeiro, senior managing director at FTI Consulting.
Despite the challenges, the growing remit offers opportunities. Piñeiro noted that GCs are gaining cross-departmental experience, positioning them for higher corporate roles.

Regulatory Challenges Escalate

The introduction of the Digital Operational Resilience Act (DORA) in Europe is a stark reminder of the growing regulatory burdens facing GCs.
Taking effect on January 17, DORA requires organizations to bolster their cybersecurity measures, with fines as steep as 5 million euros ($5.15 million) or 2% of annual turnover for noncompliance.

“DORA requires organizations to have an ICT risk strategy signed off by the board, forcing the whole members of that board, and not only cyber or ICT team, to be responsible for the implementation of the regulation, developing a culture of cyber security and cyber accountability,” Piñeiro explained. “Complying with this new European regulation will mean implementing 40 different policies, adding 70 mandatory contract clauses with providers, and completing about 100 data fields for incident reporting.”

Budget Relief in Sight

After years of shrinking resources, GCs are seeing a shift in budgetary trends.

A survey by Axiom Law found that 79% of U.K.-based GCs expect their budgets to rise by an average of 7% in 2025.
This follows a significant reversal from 2023, when 96% of respondents experienced budget cuts averaging 12%. By 2024, over a third reported increased budgets, reflecting growing recognition of their expanded roles.

With looming challenges like cybersecurity, regulatory compliance, and geopolitical uncertainty, GCs are making strong cases for sustained budget growth.

Navigating C-Suite Dynamics

Despite their expanded roles, many GCs still lack direct reporting lines to CEOs or positions on executive teams—both of which are pivotal for effective decision-making.

Matthew Wilson, group general counsel at Fremantle, emphasized that one-size-fits-all approaches do not work.

“It can work either way, but there is greater risk for the GC and the organization if you're not reporting to the CEO and/or, importantly, not on the exec team—both are equally important. Your ability to advise fearlessly, impartially and not have your advice repackaged or interpreted is more likely to be compromised,” he said.
“That said, there are other factors that can affect the reporting line and the place on the exec team. For example, the individual in question and their ability to play a broader leadership role in the organization and take on wider responsibilities.”

Wilson also stressed the need to consider organizational structure and regulatory frameworks, noting that highly regulated or listed companies may necessitate stronger GC visibility within the C-suite.