New continuity procedures go into effect for England's lawyers

Published 23 May 2007

Regulations demand periodic risk management reviews, procedures to respond to IT failures, and an assessment of client-related credit risks

Those in the legal business know the importance continuity planning. After all, if a traditional business loses its records in a flood or fire, the main victim will be itself as it is unable to get a grip of its invoices and struggles to reestablish working business relationships. In the case of a lawyer however, the consequences are mainly external, with a client facing major liability or prison time suffering when his lawyer cannot operate efficiently. As a result, barristers and soliciters in England and Wales are now required to develop continuity procedures — a regulation that will go into effect 1 July of this year. The new reguations, Continuity Central reports, include the following requirements:

BULLETS

Firms should have arrangements in place for assessing the risks attaching to each area of their operation.

Risk management arrangements are unlikely to be considered adequate unless they include periodic reviews of the firm’s risk profile.

Arrangements should not be confined to risks arising from professional negligence, but should extend to client related and business related risks of all sorts. A non-exhaustive list might include complaints (including a complaints log); client-related credit risks and exposure; claims under legislation relating to such matters as data protection; IT failures and abuses; and damage to offices.