Knot risky?

Challenges in the risk landscape only continue to grow. With changes around the new Solicitors Regulation Authority (SRA) handbook in place, as well as the anti-money laundering (AML) fifth directive, and an increase in threats to cybersecurity, 2020 was already destined to be a risk-filled year. And the professional indemnity insurance (PII) market was already very volatile.

NIGHT LIGHTS

At this point in time, Jayne Kendrick-Jones, head of client care at Nockolds says, the number one concern is, of course, the Covid-19 pandemic. But Sarah Charlton, legal practice tutor and examiner at the Institute of Legal Finance and Management (ILFM) says, in terms of regulatory pressures, AML is by far the greatest area of concern.

THERE’S A PROCESS FOR THAT

Technology is a significant challenge for SMEs as they don’t often have the spare capital to invest in – or the time to source and implement – the tech needed to make them competitively priced, says Sarah Charlton, at the ILFM. “I think we’ll see an increase in smaller firms being priced out of the market simply due to a lack of IT investment and nothing else.”

STORMING THE WEATHER

Law firms are well versed in risk. And in today’s business and technology climate, risk is everywhere. You see it in mobile working and the use of cloud services to boost productivity, and in the threat of data breaches and IT failures. One area of risk revolves around data. As the lifeblood of a law firm, data needs to be carefully managed, stored and protected, says Andy Bevan at Pulsant.