New research confirms that litigation and finance teams have an important—and growing—area of current and potential alignment: affirmative recovery litigation programs. In-depth interviews with more than 50 general counsel, heads of litigation and other senior legal leaders at major corporations around the world confirm a strong desire to collaborate across functions—specifically by taking a more systematic approach to affirmative recovery programs. This recent research builds on earlier research with CFOs and senior finance professionals that also emphasized this opportunity and desire to join forces. The research contradicts unhelpful stereotypes that emphasize the potential for conflicts between these teams based on the assumption that the litigation team tends to grow the expense line and that the finance team tends to seek to shrink it—when in fact, they can work together on affirmative recovery programs not only to reduce expenses but also to enhance liquidity.

Affirmative recovery comprises any legal efforts to return money to the business when companies have been harmed and suffered monetary losses as a result. Litigation often becomes an unavoidable and compelling option when other recovery methods prove inadequate to recouping money owed to the business. But proactive litigation adds cost and risk in the form of legal fees and expenses—and because a successful outcome is always uncertain as to whether and when it will occur, legal teams may struggle to get support for moving forward from C-suite leaders for whom certainty of cash flows is of primary concern. Consequently, even very large companies may leave meritorious claims unpursued and judgments unenforced. Indeed, nearly three in five legal officers confirm that their organizations have decided not to pursue or enforce meritorious claims, judgments or awards in the past year, with cost a leading factor.