ACC 2024 CLO Survey Unveils Challenges for Legal Leaders

The recently released Association of Corporate Counsel (ACC) 2024 Chief Legal Officers Survey, conducted in partnership with Exterro, a leading data risk management software solution, seeks to understand how the role of the CLO is evolving, the priorities and challenges in managing a corporate legal department, and the ways in which legal teams bring value to the business. This year’s report is based on responses from 669 CLOs from organizations spanning 20 industries and 31 countries.

This extensive survey, one of the largest focused on Collateralized Loan Obligations (CLOs), unveils critical aspects of the challenges faced by CLOs at both the legal department and organizational levels. Key findings indicate a growing concern among CLOs about regulations and enforcement, privacy and data security, and cybersecurity threats. Notably, 34 percent of CLOs identify data breaches as the most significant data-related threat in 2024.

Despite years of addressing data-related risks, only nine percent of respondents express high confidence in their organization’s ability to mitigate emerging data risks. This underscores the need for continued efforts in enhancing data risk management strategies.

At the legal department level, 42 percent of CLOs report facing intense budgetary pressures, with 52 percent indicating that their legal department received a cost-cutting mandate in the past year. Operational efficiency emerges as the top strategic initiative for the coming year, with 40 percent of CLOs planning to implement new processes to defend against emerging threats.

Veta T. Richardson, ACC President & CEO, notes, “CLOs are finding themselves in an increasingly difficult position,” emphasizing the expanding role of CLOs amidst the pressure to achieve more with limited resources. The survey reflects the dedication of CLOs to maintaining high standards in a complex business and regulatory environment.

Bobby Balachandran, Founder and CEO of Exterro, acknowledges the daunting task CLOs face in minimizing data risks and highlights the need for a new approach to utilizing people, technology, and improved processes effectively.

The survey also reveals that a majority of CLOs oversee multiple business functions beyond legal, including privacy, ethics, and risk. Workloads have increased significantly for 59 percent of CLOs over the past year, with a focus on achieving a balance between work and personal life.