Why risk management skills are increasingly critical for legal professionals 

The role of in-house legal teams has evolved significantly in recent years. Legal professionals are not just expected to advise after an issue arises. They are increasingly asked to anticipate potential problems, assess their impact and help organizations mitigate business risk. 

This is backed by the latest data from our 2026 global in-house legal market report and salary guide. When in-house legal professionals were asked if their role had expanded over the last 24 months, 49% told us risk management had been added to the remit.

This makes risk management a core legal competency. For employers, it changes how legal talent should be assessed. For legal professionals, it creates an opportunity to demonstrate value beyond technical legal advice. By focusing on these skills, hiring managers looking to build in-house legal teams and legal professionals seeking to progress their career can both find success.

Legal leaders are taking on broader risk responsibilities 

This shift is part of a wider restructuring of in-house legal departments across US industries. Legal leaders are now expected to contribute to strategic decision-making, not simply provide legal advice. In our global in-house legal market report and salary guide, 84.8% agreed that their function meaningfully influences board-level decisions. 

That influence depends on commercially minded risk management. This is particularly important in high-growth environments, private equity-backed businesses, technology companies, and organizations undergoing transformation. 

For legal professionals, this means developing the ability to: 

• Balance risk against commercial opportunity 

• Prioritize high-impact issues 

• Provide practical recommendations 

• Influence stakeholders outside legal 

• Support strategic business objectives 

Cybersecurity has made risk management a legal priority 

Cybersecurity shows how legal and operational risk now overlap. A cyber incident can trigger regulatory, contractual, litigation, reputational and business-continuity issues at the same time, which makes legal involvement essential to a coordinated response.  . 

According to the ACC Foundation 2025 State of Cybersecurity Report, 93% of organizations include a member of the legal department on their incident response team, while 38% of chief legal officers now have cybersecurity leadership responsibilities, up from 15% in 2020. 

Employers are therefore placing greater value on candidates who have experience in: 

• Managing data breach responses 

• Advising on incident reporting obligations 

• Working alongside security teams 

• Handling regulatory investigations 

• Supporting crisis management efforts 

Even outside highly regulated sectors, this experience can demonstrate a wider ability to assess risk, coordinate stakeholders and make decisions under pressure.

AI is creating new risk responsibilities 

AI is creating both opportunities and risks for in-house legal teams, further expanding the role. As organizations adopt generative AI, legal teams are helping the business capture its benefits while managing questions around governance, compliance, intellectual property, privacy and cybersecurity. 

When asked whether they are involved with overseeing AI use in their organization, 64.7% of respondents to our in-house legal survey reported formally sharing the responsibility with other departments. Respondents also ranked the legal function as the most likely team to be accountable for AI-related legal risk (31.7%). 

This emphasizes just how important it is for in-house legal professionals to build robust risk management skills, and as organizations deploy generative AI technologies, legal professionals may be asked to: 

Establish governance frameworks 

• Assess regulatory exposure 

• Develop AI usage policies 

• Manage intellectual property concerns 

• Address privacy and cybersecurity risks 

• Monitor evolving regulation 

The common thread is not simply compliance. It is the ability to understand a new technology, identify how risk could affect the wider organization and build proportionate controls that allow the business to move forward.   

Risk management skills present a competitive advantage 

Employers want legal professionals who can support growth while managing exposure. That means moving beyond a gatekeeper role and explaining which risks matter, what the available options are and how each option could affect the business. 

Some of the most in-demand legal capabilities include: 

Commercial judgment 

The ability to evaluate legal risk in the context of broader business goals and strategic priorities. 

Strategic thinking 

Assessing potential future risks and helping leadership make informed decisions before problems arise. 

Cross-functional collaboration 

Working closely with risk, compliance, cybersecurity, finance, HR, and operations teams. 

Crisis management 

Supporting organizations through investigations, regulatory actions, cybersecurity incidents, and other high-impact events. 

Executive communication 

Translating complex legal issues into practical business advice for senior leadership and boards.  

What employers look for when hiring 

As legal and risk functions converge, legal credentials remain important, but they do not tell the whole story. The strongest candidates can show how they have identified a material issue early, influenced a decision and helped the business reach a workable outcome.   

When assessing candidates, hiring managers should look for clear examples of how they have: 

• Identified risks before they materialized 

• Influenced business decisions at an early stage 

• Managed cross-functional projects 

• Worked through regulatory change programs 

• Contributed to governance or risk frameworks 

Interview questions should test both the candidate’s analysis and their approach. Ask what information they considered, how they prioritized competing risks, who they involved and how their advice affected the final decision. This reveals whether they can assess enterprise-wide impact rather than focusing only on a narrow legal issue.   

The future legal professional will be a risk adviser 

The legal profession is moving beyond its traditional remit. Today’s legal teams are expected to help organizations navigate uncertainty, strengthen resilience, and support strategic decision-making. 

As regulatory requirements expand and business risks become more interconnected, risk management capability will matter at every level of the legal function. For employers, hiring lawyers who combine legal expertise with sound risk judgement can protect the organization and enable sustainable growth. For legal professionals, building those capabilities can strengthen both day-to-day impact and long-term career progression.