Enhancing Governance Amid Continued Regulatory Scrutiny

Crisis Management and Prevention

We are uniquely positioned to support you in 2025 through any crisis. We are experts at conducting efficient and effective risk-based investigations and interfacing with global regulators to achieve compliant business-focused outcomes. We handle whistleblower complaints fairly and ensure appropriately scoped reviews. Our data-driven, behaviorally and culturally informed approach allows us to partner with our clients to navigate crises and to avoid them in the first place through the development and testing of effective compliance solutions. We work with investors and companies of all sizes, both public and private, to understand their business needs, risk management frameworks, and responses to constantly evolving global regulation.

Key Considerations in 2025

Increased Focus on Nonfinancial Misconduct

Global Drive to Encourage Whistleblower Reporting

Whistleblowing remains a core focus for global enforcement authorities. For example, the U.S. Department of Justice recently launched a three-year pilot programme offering financial rewards to encourage whistleblower reporting, including for reports regarding foreign bribery. The DOJ received more than 100 reports in less than a month following this launch. This pilot programme, and similar initiatives to prioritise whistleblower reporting in other jurisdictions, underlines the importance of investors implementing — and ensuring their investments implement — robust compliance programmes and ’speak-up‘ mechanisms to detect and prevent misconduct. Moreover, organisations need to be able to assess whether their ’speak up‘ mechanisms are working.

Incentivisation of Voluntary Self-Disclosure in the Context of M&A Transactions

In October 2023, the DOJ announced a Safe Harbor Policy granting companies involved in bona fide arm’s-length transactions six months post-acquisition to disclose identified misconduct at the acquired company, with remediation to be completed in one year and ongoing cooperation in exchange for a presumptive declination. This policy reinforces the importance of investors conducting robust pre-acquisition due diligence and, when warranted, timely post-closing review of acquired investments. Importantly, review pre-sale should also be conducted given that the new purchaser may be incentivised to disclose misconduct identified after exit.

Trade Compliance Risk Not Going Away

Governments worldwide continue to focus on the enhancement and enforcement of national security laws and regulations concerning cross-border transactions across various industries. In the US, these laws are aimed at preserving the country’s technological, military, and security advantages, and have become more expansive over time. They are also subject to change in their specifics in light of the results of the US presidential election.

Additionally, jurisdictions outside the US (notably G7 members) have significantly increased resources to enforce sanctions and export controls. This includes global coordination efforts together with enhanced staffing to scrutinise transactions and conduct investigations, as well as establishing new enforcement agencies (such as the Office of Trade Sanctions Implementation in the UK which has the authority to impose substantial civil monetary penalties on a strict liability basis).

Data Analytics & AI

Trends and themes to act on

Strengthening Governance Structures for Nonfinancial Misconduct: Scope and implement robust governance and procedural frameworks to mitigate legal, reputational, and financial risks associated with nonfinancial misconduct.
Implementing and Assessing Whistleblower Mechanisms: Develop and regularly evaluate whistleblower programs for detecting and preventing misconduct, and to ensure alignment with global enforcement trends.
Conducting Comprehensive Due Diligence in M&A: Prioritise thorough pre-acquisition due diligence and regular monitoring to surface risks and put in place mitigation measures.