Risk Management

Risk management is a feature of most of our services. One of the more common definitions from the financial services sector is that put forward by the Basel Committee on Banking Supervision as:

'The risk of direct or indirect loss resulting from inadequate or failed internal processes, people, and systems or from external events.'

Risk takes many forms, but one of the better analyses for law firms is that it is:

  • strategic (the risk of making wrong decisions for the firm's size and profile)
  • environmental (the risks faced by all employers and occupiers of premises)
  • operational (the risk of claims and complaints from the services provided)
  • regulatory (the risk of disciplinary processes from professional non-compliances)

It is the last two headings that bear most heavily on law firms. Risk management came of age within the legal sector with the advent of the private market for indemnity insurance ten years ago. 'If you expect us to assume your risk', insurers pointed out to firms, 'we expect to see some evidence of systematic controls over the likely sources of claims'. The increasingly demanding approach of the SRA also produces greater risks of censure and disciplinary for firms of all shapes and sizes.

Risk management is not just a matter of getting the best deal on indemnity insurance, however - avoiding mistakes and service failures is also key to providing the sort of service levels that most firms aspire to and clients now demand.

Our services for firms wishing to improve their risk profile include:

Please contact Matthew Moore or Simon Bray.