Risk Management in Law Firms

Mitigate Risk and Enhance Firm Success

Häftad, Engelska, 2022

Av William Glynn, Niya Phiri, Alexia Howard, Simon Konsta, Nigel Miller, Simon Chester, Sandy Gill, Anousheh Bromfield, Charles Kuhn, Brian Rogers, Rebecca Atkinson, Frank Maher, Peter Noyce, Noah Fiedler, Tracey Calvert, Jamie Butler, Ruth Bonino, Chris Holme, Jessica Clay, Iain Miller, Lucinda Soon, Jonathon Bray, Katerina Menhennet

2 919 kr

Beställningsvara. Skickas inom 5-8 vardagar

Fri frakt för medlemmar vid köp för minst 249 kr.

Effective risk management in law firms has never been more important. Lawyers must contend with the long-standing risks associated with the practice of law, such as anti-money laundering and issues of client confidentiality, as well as new risk areas such as data protection and cybersecurity, and increased regulatory burdens. Poor handling of these risks can lead to reputational damage, diminished client relationships, and even regulatory action, and so it is critical for law firms to remain vigilant and put in place robust risk management policies, processes and systems.Risk Management in Law Firms brings together lawyers, consultants and other risk and compliance professionals to provide expert and practical guidance on essential risk management topics. Chapters cover risks relating to clients, internal operations and law and regulation, and address recent developments including issues arising from the shift to hybrid working, the increased focus on ESG and climate change, and the extended influence of clients through outside counsel guidelines. There is also consideration of the future of risk management with coverage of the proposed changes to the SRA Codes of Conduct to address issues relating to wellbeing and unfair treatment at work, and the commercial opportunities for law firms and individual lawyers presented by the increasingly flexible principles-based regulation.This title aims to help law firm leaders and individual lawyers understand and prepare for the risks they face – as well effectively handle them when issues do arise – whether they occur in the firm’s internal operations or its dealings with clients. In-house counsel and others will also find it useful to understand their law firm colleagues better, enhancing professional relationships. With the comprehensive coverage of key risk areas in this title, lawyers and firms can not only ensure compliance, but also maintain healthy client relationships, educated staff, a positive reputation, and continued success and growth.

Produktinformation

Utgivningsdatum2022-10-17
Mått156 x 234 x 16 mm
Vikt344 g
FormatHäftad
SpråkEngelska
Antal sidor195
FörlagGlobe Law and Business Ltd
ISBN9781787429161

Tillhör följande kategorier

Juristyrken inom Juridik

Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ixAbout the authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xviiChapter 1: Managing risks in the hybrid “office”By William Glynn, legal director, and Niya Phiri, partner, Clyde & Co LLPIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1People risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Operational risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Data/IT risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Legal/regulatory risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Chapter 2: Climate change and ESG risks for lawyersBy Alexia Howard, senior associate, and Simon Konsta, partner, Clyde & Co LLPIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13What is ESG? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Reputational risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Transition and transactional risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Corporate disclosure and liability risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Greenwashing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Diversity and inclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Chapter 3: Data protection By Nigel Miller, founding partner, Fox Williams LLPIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Data protection principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31Lawful ground for processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Accountability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Data processors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Individual rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Personal data breach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39International data transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39Marketing and cookies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41Chapter 4: Cybersecurity: an existential risk for law firmsBy Simon Chester, counsel, conflicts and regulatory matters, and Sandy Gill, assistant general counsel, Gowling WLG (Canada) LLPRegulatory requirements............................................... 45Client pressures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46Cloud computing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Remote working . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48Policies and procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48Insider risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50Assessing precautions.................................................. 52Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54Planning for breach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55Next steps.............................................................. 58Chapter 5: Criminal finances and investigationsBy Anousheh Bromfield, senior associate, and Charles Kuhn, partner, Clyde & Co LLPIntroduction and types of financial crime . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63Investigations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63Privilege . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66Representation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69Jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69Specific considerations for certain offences in law firms – (section 330 POCA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71Chapter 6: Anti-money laundering – are you doing enough to protect your firm?By Brian Rogers, regulatory director, The Access GroupThe money laundering landscape . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73Law firm sanctions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73SRA AML thematic reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74AML guidance.......................................................... 75AML governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76Firm (practice)-wide risk assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76Client/matter level risk assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77AML policies, controls, and procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80Chapter 7: Professional indemnity insuranceBy Rebecca Atkinson, director of risk and compliance, Howard KennedyThe requirement to have professional indemnity insurance . . . . . . . . . . . 81How much insurance cover to buy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82What a circumstance is, when and how to notify possible claims to insurers, and who will handle the claim . . . . . . . . . . . . . . . . . . . . . . 83Should you rectify mistakes? Beware own interest conflict . . . . . . . . . . . . 85PI insurance renewal – what happens each year and top tips for renewal: how to present your firm well . . . . . . . . . . . . . . . . . . . . . . . . . 86Possible PI insurance exclusions for sanctioned entities and certain types of work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88A short note about cybercrime insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88Limiting liability clauses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89Chapter 8: Protecting partner assetsBy Frank Maher, partner, Legal Risk LLPIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91Professional indemnity insurance and the exclusions . . . . . . . . . . . . . . . . . . 92Retirement and professional indemnity insurance . . . . . . . . . . . . . . . . . . . . . 95Defensive practice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96Insurance options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98Chapter 9: SRA complianceBy Rebecca Atkinson, director of risk and compliance, Howard KennedyWhat is the SRA and when do you need to be authorized by it? . . . . . . . 101How to get authorized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104The annual reauthorization process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104The SRA Standards and Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106SRA Enforcement Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112The COLP and COFA role and reporting requirements . . . . . . . . . . . . . . . . . 113Ethics and how to approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115SRA warning notices and guidance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115Chapter 10: Mitigating risk through your client journeys and practicesBy Peter Noyce, head of legal sector, Menzies LLPTake on process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119Throughout the transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120Completion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120Financial disciplines and controls should also be part of the toolkit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123Chapter 11: Outside counsel guidelinesBy Noah Fiedler, shareholder and co-leader of the Attorney Risk Management Practice Group, Barron & Newburger, P.C.Comprehensive outside counsel guidelines become standard . . . . . . . . . 125Indemnity provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126Defining conflicts of interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127Managing the risk of OCGs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129OCGs are here to stay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130Chapter 12: Conflicts of interest and confidentiality duties – effective risk managementBy Tracey Calvert, founder and director, Oakalls Consultancy LimitedOwn interest conflict . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133Conflicts of interests when acting for clients . . . . . . . . . . . . . . . . . . . . . . . . . . 134Confidentiality and disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135Risk management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136Risk compliance objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137Risk management pinch points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138Compliance solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140The bigger picture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141Chapter 13: ComplaintsBy Rebecca Atkinson, director of risk and compliance, Howard KennedyThe requirements regarding complaints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143What should the complaints handling process be and who should undertake complaint handling in the firm? . . . . . . . . . . . . . . . 144How to effectively handle complaints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146Complaints made by non-clients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149How to handle online reviews – good or bad . . . . . . . . . . . . . . . . . . . . . . . . . . 149The Legal Ombudsman Scheme Rules, publication, and case fee . . . . . 150Further guidance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152Chapter 14: Effective supervision in remote and hybrid teamsBy Jamie Butler, executive coach and facilitator and founder, Jamie Butler Coaching LimitedWhy is good supervision important? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155Risks, challenges, and opportunities of remote supervision . . . . . . . . . . . . 156Core skills and characteristics of an effective remote supervisor . . . . . . 156Setting “ground rules” to establish responsibility and build trust . . . . . . 157Communicating for effectiveness and productivity . . . . . . . . . . . . . . . . . . . 158Maximizing engagement, inclusion, and wellbeing . . . . . . . . . . . . . . . . . . . . 158Hybrid working – developing approaches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160Hybrid working and supervision – opportunities and challenges . . . . . . 161“Supervisor as coach” skills – managing from a distance . . . . . . . . . . . . . . 162Chapter 15: Lateral hiring in law firms – risks and rewardBy Ruth Bonino, professional support lawyer, and Chris Holme, partner, Clyde & Co LLPIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165Basic legal, ethical, and regulatory obligations of partners in UK law firms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165Setting the scene . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167The due diligence process – how to avoid overstepping the mark . . . . . 168Pre-employment vetting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169Conflict checks – how to avoid breaching confidentiality obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170Integration issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170Key rules of the road . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172Chapter 16: Culture matters – a new era for law firm risk managementBy Jessica Clay, partner, Iain Miller, partner, and Lucinda Soon, professional support lawyer, Kingsley NapleyEthical culture under the spotlight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174Assessments of unfair treatment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177Concurrent employment claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178Challenging behavior that does not meet the standard . . . . . . . . . . . . . . . 179Personal and professional boundaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181Chapter 17: Innovation and the opportunities in flexible regulationBy Jonathon Bray, director, Jonathon Bray Limited Regulation-led innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185CMA report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186Deregulation-led innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187Other external factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189Ten years of ABSs – evolution rather than revolution? . . . . . . . . . . . . . . . . . 190Innovation is easier said than done.................................... 192About Globe Law and Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195