ABCs of Risk Management (Part I)

A — Attendance notes. When instructions are received (even over the telephone) and advice given, it should be recorded in writing. It is no excuse to say you do not have the time.

B — Back office, ie accounts, despatch, reception etc. These should be closely supervised and not left to their own devices. Many a firm has got into trouble for failure to supervise the back office properly.

C — Communication. Both internal communication within the firm and external communication to clients and others should be clear to avoid confusion and misunderstanding and must be well documented.

D — Diaries. It is important to make good use of them. Research, record and react to critical dates. Missing key dates is one of the most common causes of negligence amongst solicitors.

E — Education. Make sure you are constantly learning and adapting to new market conditions.

F — File management. Develop a common approach to file management across the firm or department. It must always be possible for another member of the firm to pick up the file in your absence and know where to find all the relevant information without delay.

G — Guidance. Ensure that both professional and support staff receive the guidance they require. Do not assume, without first ascertaining their level of competence, that they can handle a matter without guidance.

H — Home. Most solicitors need to spend more time at home. Long hours and late nights not only cause stress but also result in lapses due to fatigue, which can cause serious health and professional problems.

I — Information technology. This is an area where many mistakes can be made. Computers are machines, not fee earners. They are slaves, not masters. Always check on the output of your computer systems especially in the area of billings and financial management. And always do a cost benefit analysis before spending loads of money on computer hardware and software. Know what you are buying and why you are buying it.

J — Jack of all trades, master of none. Do not try to be all things to all men. Keep to your areas of expertise and never be tempted to offer advice on matters which are outside your area of competence.

K — Keep up to date. The law is constantly changing; it is your responsibility to keep up to date with new legislation, regulations, procedures etc where they affect you. Also, look out for new cases that may have an impact on your area of practice.

L — Limitation period. Never make assumptions in relation to limitation periods, eg is it three years for personal injury? Are you sure? What about accidents in the air, at sea or in foreign jurisdictions? Never underestimate the importance of limitation periods.

M — Mental block files. Exchange the file with another fee earner in your firm or consider using a specialist as counsel to help you break the block. ‘Sitting’ on the file can cause serious problems in terms of client service and perhaps worse, missing deadlines and limitation periods.

Next month’s issue will take you through the rest of the alphabet.

Stanley Jeremiah
Goodwins Law Corporation
E-mail: stanley_jeremiah@goodwinslaw.com