Part 3 – Risk Recording, Documentation, and Reporting
For the finale to our three-part series exploring risk and how law firms should approach the assessment and management of risk, we look at:
- How Law Firms Can Respond, Document, and Report on Risk
- Effective Risk Management and Recording Processes
- Conclusion
- Risk Management Guidance and Support
For our previous two instalments, see below:
- First Step of Risk Assessments – Part 1 (click here) and
- Risk, Identification and Action – Part 2, (click here)
To read the full article, CLICK HERE.
Alternatively, you can also read a sneak preview just below:
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How Law Firms Can Record, Document, and Report on Risk
The final and essential element of an effective risk management process is overall evidence of how the firm has managed risk retrospectively and continues to manage risk into the future. Both Professional Indemnity Insurers and The Solicitors Regulation Authority expect firms to not only have a documented process for risk management and compliance but also be able to show how they have managed risk through active implementation and monitoring.
This is often considered the most difficult part of a risk management policy; as writing, delivering, and training are controllable, but ensuring the staff within the firm take full notice of the policies and procedures and apply them in their daily work is significantly more difficult.
It is not always obvious why the firm has adopted certain policies, and some will argue that in the busy life of a lawyer, the application of policies can ‘slip the mind’ when taking into account the other tasks required to perform in their role.
There are, however, no real acceptable excuses for not complying with a firm’s policies. They have been developed and delivered for areas on, and complying with them is not a ‘nice to have’ but essential.
The rest of this article provides guidance on how a firm can implement an effective process to ensure they have efficient solutions to document, evidence and demonstrate the firm’s activity and that it complies with the requirements of the regulators and insurers through robust risk management solutions.
At Regulation and Compliance Office, we work with firms of all sizes, offering expert and cost-effective solutions and providing annual risk assessments alongside developing bespoke policies and training for all staff.
For more information on how The Regulation and Compliance Office (RACO) works with firms on risk management, you can contact us on 0203 985 8550, email us info@regulationandcomplianceoffice.co.uk,or visit our website and make an online enquiry.
Risk Management Guidance and Support
Regulation and Compliance Office works with law firms of all sizes to create effective risk management processes that protect the firm and those it interacts with.
We have developed a cost-effective and consultative approach to the implementation of policies and procedures and have delivered packaged solutions to firms, including:
Detailed Risk Management & Compliance Review – This review can be independently secured by the Firm or through Professional Indemnity Insurers. For many firms, this is an essential step in the professional indemnity renewal process, which assists Insurers in gaining a greater understanding of the risk profile for their Insured Law Firm. This, in turn, will assist with renewal terms.
This review can be extended to include an Independent Audit for the purposes of Regulation 21 of the Anti-Money Laundering Regulations (MLR) 2017. Please click here to see our brochure on this service.
