Beyond compliance: why horizon scanning is creating a new era of possibilities for in-house legal teams

As we look beyond the topic of compliance, horizon scanning is empowering in-house legal teams to anticipate trends and navigate future legislative and regulatory changes. This is the systematic process of identifying and monitoring emerging issues, risks and opportunities that could impact your organisation. For in-house legal teams, it means proactively detecting legal and regulatory changes before they create compliance gaps or business disruptions.

In today’s fast-paced and ever-evolving business world, legal teams are facing an increasing array of challenges and complexities. As such, it’s all the more important for in-house lawyers to stay ahead of the curve. This way, they can effectively manage risk and help seize new opportunities.

Teams which embrace horizon scanning evolve from reactive responders to strategic architects. They proactively anticipate legislative and regulatory shifts to both safeguard their organisations and position them to take full advantage of emerging business opportunities.

For example, the laws around cookie compliance took a few businesses by surprise. However, the Information Commissioner’s Office (“ICO”) was quite clear in their warning in relation to cookie compliance – “make changes now or face the consequences”. Those who were forward-thinking made the necessary changes to ensure that their business operations were not affected.

Why horizon scanning is essential for in-house legal teams

Horizon scanning is no longer a luxury for in-house legal teams. The strategic approach enables General Counsel and Heads of Legal to anticipate future risks, prepare for changes and make informed decisions that align with the organisation’s long-term goals. Staying aware of trends, legal shifts and industry-specific developments means legal counsel can advise their organisations more effectively, reduce the chance of compliance issues and create a framework for futureproofing the business, whilst also allowing for growth and development.

Key components of horizon scanning for in-house legal teams

To effectively implement the process, legal teams need to leverage a variety of tools and resources. It is no surprise that generative AI seems to be leading the charge in this area. We are seeing many in-house teams effectively leverage AI to help make the process even more seamless. Commercial Partner and technology specialist, Frank Jennings, has recently published a guide on using AI within an in-house legal setting.

Importantly, horizon scanning is not a one-time activity but a continuous process. Legal teams must establish a routine for monitoring key sources of information and regularly reporting their findings to senior management. This ensures that the leadership team is always informed about emerging trends and regulatory changes that might require action.

Anticipating legal and regulatory changes

• By recognising potential shifts before they become law, in-house legal teams can guide their organisations on how to adjust policies and strategies to ensure compliance. This can be particularly important in industries with high regulatory complexity, such as healthcare, finance and technology.

Build cross-functional collaboration:

• Legal teams should collaborate with other departments within the organisation to enhance horizon scanning efforts. For example, working closely with the compliance and risk management teams can provide a more holistic view of emerging issues.

Create a structured assessment framework

• Once emerging trends and risks are identified, general counsel and in-house lawyers should engage in scenario planning to assess the potential impact on the organisation. This process involves considering various “what-if” situations and evaluating how different legal or regulatory changes might affect the business. From there, legal teams can develop action plans to mitigate negative impacts or capitalise on new opportunities.

Implement a legal roadmap

• A critical outcome of horizon scanning is the creation of a legal roadmap — a strategic plan that outlines how the company will respond to upcoming legal and regulatory challenges. This roadmap should not only address compliance issues but also incorporate proactive steps to align with upcoming trends and leverage opportunities.

Best practices for horizon scanning implementation

• Regular cadence: schedule dedicated time for horizon scanning activities and provide training and insight on essential risk management approaches
• Accountability: assign specific responsibility for monitoring different areas and conduct ‘near-miss’ reviews
• Documentation: maintain a centralised tracking system for emerging issues and time and identifying key legislative changes in your sector and a set a ‘tracker’ on any developments
• Action planning: create response plans for high-priority developments and develop crisis-management plans
• Performance metrics: measure effectiveness through KPIs like advance warning time and leveraging AI to create relevant and customised industry-specific legislative and regulatory updates – but not removing the ‘human audit’ element from the process.