F O C U S O N R I S K S M A N A G E M E N T I N A L A W F I R M

Well, many factors pose a risk to the law firms. However, not all risks are of the same severity when it comes to those in law firms. Some risks can be common and insignificant while some are rare and have a huge impact on the law firm ’ s operations.

T Y P E S O F R I S K S 01Risk related to the client Claims Risk Departure Risk Credit Risk

C L A I M S R I S K The client might seek compensation through professional laxity duty claims. Direct consequences : The law firm is obliged to pay for damages or other litigation costs. Indirect consequences : It includes damage to the law firm ’ s reputation.

D E P A R T U R E R I S K Clients who are not satisfied are likely to leave the firm. Clients fire their lawyers if their case is not handled properly.

C R E D I T R I S K Unhappy clients don ’ t pay bills as well as make claims against their lawyers.

T Y P E S O F R I S K S 02Risk related to attorneys Current Lawyer Newcomers Departing Lawyers

C U R R E N T L A W Y E R Lawyers can present performance risks since sometimes they fail to perform at the level required. Current lawyers are the source of conflict risks as they wear “ multiple hats ”.

N E W C O M E R S New lawyers may not be what he / she appears to be in terms of expertise and skills. Some lawyers leave their firms for reasons that are not self - evident.

D E P A R T I N G L A W Y E R S The loss of a valuable lawyer including the potential gaps in expertise. The second is the potential compromise of a confidential client and firm information.

R I S K M I T I G AT I O N F O C U S E D S T R A T E G I E S Client risk control Lawyer risk control Miscellaneous / policies and systems

C L I E N T R I S K C O N T R O L Client teams can reduce performance risk by delivering more breadth of experience and skills set to the clients. Proper communication between the client and firm mitigates the risk to a certain extent. Proper financial tracking within the law firm management is essential in case of any financial crises. law firm management is essential in

L A W Y E R R I S K C O N T R O L While hiring new lawyers, proper interviewing process can mitigate the risk of making a bad hiring decision. For lawyers who are quitting their jobs, protecting clients and firm ’ s information is critical.

MISCELLANEOUS Keep your conflicts database and searching procedures up - to - date. Follow a proper process to maintain policy standards. Adopt a system for screening confidential client information. Involve “ un - conflicted ” experienced lawyers to manage and resolve conflicts.

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