As internal misconduct increasingly escalates into regulatory scrutiny or litigation, proactive investigations are becoming essential for corporate resilience. Organisations can no longer afford to wait for external triggers before addressing potential wrongdoing. Instead, they must adopt a forward-looking approach that balances discretion with rigour.
Recent industry data shows that 58% of European Chief Legal Officers have seen an increase in internal investigations – well above the global average of 44%.[1] Costs are rising too, with 40% reporting increased investigative expenditure compared to 29% globally.[1] The implications are clear: misconduct is not only more prevalent but more expensive, and the consequences more far-reaching. In 35% of cases, internal investigations are the primary trigger for disputes and regulatory scrutiny, revealing the risks of insufficient early intervention.[2]
White collar crimes – ranging from fraud and corruption to IP theft and anti-competitive behaviour – expose organisations to financial, reputational, and legal harm. As scrutiny intensifies, especially from European regulators, General Counsel must ensure their organisations are prepared for small internal investigations that may grow into something more.
Technology and forensic strategies – appropriately integrated into governance frameworks – can support internal legal teams, provide board-level visibility, and help maintain defensibility across complex, evolving risk environments.
From first response protocols to cross-border evidence handling, effective readiness mitigates exposure, supports transparent reporting, and strengthens the organisation’s position if the matter is escalated to the board, stakeholders, and regulators alike.
The rising pressure on legal departments
European legal teams face a growing volume and complexity of internal matters. 58% of Chief Legal Officers report an increase in investigations – outpacing the global trend. 40% also face higher investigation costs, and 35% identify internal investigations as a primary trigger for regulatory or legal escalation.[1][2]
This mounting pressure reinforces the need for robust governance, supported by frameworks that are agile under scrutiny, adaptable across jurisdictions, and capable of managing legal exposure without disrupting business continuity. In KLDiscovery’s experience, organisations that prepare early with structured playbooks and scalable resources are best positioned to meet these challenges head-on.
Understanding the risks
Internal investigations arise from a diverse set of triggers – including white collar crime, whistleblower reports, HR-related misconduct, regulatory breaches, and cyber incidents.
While the nature of these matters may vary, they share common legal, reputational, and operational risks. has repercussions well beyond fines or financial loss. These matters often impact board-level reporting, shareholder confidence, and cross-border risk exposure. General Counsel must therefore approach internal investigations with the same rigour as external litigation, ensuring governance structures are credible, defensible, and aligned to regulatory expectations, while protecting the organisation’s reputation.
Proactive over reactive: strategy matters
Waiting until a concern escalates can delay containment and increase exposure and legal risk. Timely, confidential, and methodical internal investigations provide control over the narrative and support well-informed, risk-adjusted decisions at board level.
KLDiscovery supports its clients in developing bespoke protocols that can reduce investigative delays and enhance early risk management.
Evidence from the ground up
The credibility of any internal investigation depends on the integrity of its evidence. Defensible digital forensics – executed across devices, jurisdictions, and cloud environments – preserve evidential integrity while enabling fast and proportionate scoping. KLDiscovery routinely supports remote and on-site forensic collections of evidence globally, including multi-custodian environments and emergency scenarios such as dawn raids.
Importantly, investigative protocols must also balance transparency with respect for employee privacy and data protection rights. This includes limiting data collection to what is necessary, ensuring access is role-based and documented, and complying with applicable employment and privacy laws in jurisdictions with strict data handling regulations such as the EU.
Technology-enabled intelligence
Handling large volumes of unstructured and multilingual data requires tools that deliver insights fast. Investigation platforms with accelerators predictive analytics, natural language processing, and AI-based triage can surface key facts early, reduce scope, and contain costs. In KLDiscovery’s platforms, features such as predictive coding enable faster prioritisation and smarter decision-making – particularly important in time-sensitive contexts.
Scalable, defensible document review
Reviewing evidence can consume significant internal resources but leveraging experienced review teams, especially those fluent in relevant languages and industry nuances, allows internal counsel to retain oversight while focusing on strategic implications. In KLDiscovery’s managed review model, multilingual legal professionals are deployed quickly to reduce internal strain while maintaining review defensibility and workflow transparency.
Controlling the investigative lifecycle
From whistleblower complaints to cross-functional escalation, every stage of the investigative lifecycle requires consistency and clarity. Mapping internal processes to external expectations strengthens compliance, improves speed of response, and enhances readiness for potential litigation or regulatory action.
For General Counsel, this means periodically reviewing and refining investigative protocols to reflect regulatory developments, changes in organisational structure, and evolving data practices. Protocols should clearly outline investigation triggers, chain-of-custody requirements, legal privilege considerations, and escalation thresholds.
KLDiscovery collaborates with clients to develop investigative protocols that integrate privilege controls, escalation thresholds, and stakeholder reporting templates.
Conclusion: readiness through proactive investigation
In an environment where internal matters frequently spark external consequences, strategic readiness is essential.
By embedding clear investigative protocols, technology, and forensic integrity into corporate governance, legal departments can manage risks, maintain regulator trust, and protect enterprise value through transparent board-level accountability.
Organisations that embed these practices early are far better placed to respond effectively – avoiding costly mistakes and reinforcing trust with internal and external stakeholders.
[1] ACC Chief Legal Officers Survey 2025 (European Supplement)
[2] The General Counsel Report 2025: The Data Guardian in Chief (FTI Technology and Relativity)
