Litigation management within businesses

Effectively managing corporate disputes is crucial, as it involves addressing conflicts that may arise with employees, customers, or suppliers. Strong litigation management practices helpa company mitigate risks, streamline operations, and boost both productivity and profitability‍

The role of litigationdepartments in the business world  

Legal departments of large corporations and organizations, both private or public, are responsible for ensuring that their company's strategic, commercial and image interests are defended at a cost-effective pace. Faced with a judicialization process, intensified by globalization, businesses are now faced with multiple types of litigation, increasing their exposure to social, economic or criminal risks, and affecting their profitability.

The main causes of litigation

According to Mazars study on “Legal risks”, the main causes of litigation for companies are external factors, including:

• The increased use of legal/judicial counsel by third parties (63%),
• And the exposure linked to the establishment of an organization in new or emerging countries (42%).

Respondents place a lack of knowledge of company obligations (contractual, regulatory, environmental, ethical, etc.) in first position among internal factors (30%).

Analyze and measure to better anticipate the risk of litigation

Faced with a sharp increase in cases, the teams in charge of managing and monitoring litigation procedures are more attentive than ever to their impact on the company's financial results. Effective litigation risk prevention is based on a global view of all cases, regardless of their nature, procedure or jurisdiction.

The financial results reflect the litigation management activity and its main indicators, which are: the evolution of risk provisions, claims collected, and damages. Teams are looking for reliable analysis and reporting tools in order to prevent the most expensive risks — including the risk of insolvency — and thereby increase the company's performance in the short and long term.

To make their analytical approach to the cost of litigation risk reliable, legal departments and litigation services adopt a litigation management solution and electronic invoicing for legal services.