Legal professionals face the risk of malpractice and professional negligence due to the nature of their work. The costs involved in litigation are devastating enough, but the mark against your firm may also discourage other clients from seeking your advice in the future.
Implementing a sound law firm risk management policy helps to reduce the risk of litigation. It will also limit your firm’s exposure to liability. Meet with your team to discuss the risks inherent in your business and implement policies and procedures to reduce exposure. Risks can come from different situations, including:
- Client risks – Before accepting a client, investigate the circumstances. Make sure you have adequate staff on hand with the expertise to properly address the issues presented, so you don’t miss client deadlines. In addition, make sure there are no conflicts of interest between the client and any of your employees.
- Attorney risks – Any attorney that joins your firm should be vetted thoroughly beforehand to ensure there weren’t personnel issues at their previous employer. You want each lawyer to fit with your company’s mission statement so that they don’t make decisions detrimental to the firm.
Train your new employees on your policies and update procedures as situations change.
Law firms can’t eliminate all the risks involved in doing business, but proactive efforts can greatly reduce them.