Are You Confident In Your Firm’s Risk Strategy?
Does your current risk strategy account for:
- Systems & Data
- Experience & Dependence
- Competition
In this guide, we will be delving into the key elements you, as a law firm, need to consider. In the first of a three-part series, our compliance specialists discuss the core elements that firms must consider when assessing risk.
How to Build a Robust Risk Assessment Strategy
Risk is a widely used term in the legal sector and firms are expected to have a robust approach to risk management to ensure this is always controlled. Effective risk management is a general expectation of a law firm, including Professional Indemnity Insurers, the Solicitors Regulation Authority (SRA), Clients and Staff.
Approaching how to manage and control risk, and the impact this has firm-wide, is a key consideration for firms. Regulation 18 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017) requires law firms to carry out a written risk assessment to identify and assess the risk of money laundering that they face. However, risk is not just about money laundering; it spans much wider. An annual risk assessment, completed properly, will cover the AML risks in addition to the wider risks that firms face.
The undertaking of an effective risk assessment will provide the firm with a robust platform from which it can adapt and modify its approach, alongside providing training to staff.
At Regulation and Compliance Office, we work with firms of all sizes, offering expert and cost-effective solutions and providing annual risk assessments alongside building a risk strategy and documentation that protects the firm.
While firms face common risks from legal transactions, each firm has unique risks associated with it that require a tailored risk assessment approach.
How to Build a Robust Risk Assessment Strategy
Risk is a widely used term in the legal sector and firms are expected to have a robust approach to risk management to ensure this is always controlled. Effective risk management is a general expectation of a law firm including Professional Indemnity Insurers, The Solicitors Regulation Authority (SRA), Clients and Staff.
Approaching how to manage and control risk, and the impact this has firm-wide, is a key consideration for firms. Regulation 18 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017) requires law firms to carry out a written risk assessment to identify and assess the risk of money laundering that they face. However, risk is not just about money laundering; it spans much wider. An annual risk assessment, completed properly, will cover the AML risks in addition to the wider risks that firms face.
The undertaking of an effective risk assessment will provide the firm with a robust platform from which they can adapt and modify their approach alongside providing training to staff.
At Regulation and Compliance Office, we work with firms of all sizes, offering expert and cost-effective solutions and providing annual risk assessments alongside building a risk strategy and documentation that protects the firm.
While firms face common risks from legal transactions, each firm has unique risks associated to them that require a tailored risk assessment approach.
You can read our comprehensive guide to Risk management and strategy here.
To Access Part 1 Of Our Free Guide To Risk:
CLICK HERE
Enhance Your Risk Assessment
Don’t get caught out! To strengthen your firm’s risk assessment and learn more about how RACO works with firms on risk management, you can contact us on 0203 985 8550, email us at info@regulationandcomplianceoffice.co.uk,or make an online enquiry.
