Managing risks to grow your firm with Advanced
From inaccuracies on forms and misplacing documents to cybercrime, firms are tasked with understanding and mitigating numerous risks to not only safeguard their current operations but also encourage growth.
It is the fine balance of being prepared for the unexpected, while still daring to take strategic leaps, that defines the longevity and the reputation of any law firm.
Identifying potential pitfalls
Before confronting risks head-on, firms must develop a discerning eye to identify them. What might be hazardous for one practice can be a stepping stone for another. So, customisation is key.
In an era where technology is law’s faithful sidekick, every new software integrated should be carefully examined. Failure to do so could lead to data breaches or operational bottlenecks, denting both efficiency and trust. Our Legal Sector Trends Report found 48% say their digital systems are secure, is this due to confidence in their digital systems? Yes, and it comes from assessing their technology and the risks involved before and after taking on new solutions.
Venturing into new areas of law or expanding the practice in terms of headcount and new offices can be pivotal for growth. However, without proper risk management, they might just as easily lead to legal entanglements and financial haemorrhages.
Fortifying your firm
Once risks are spotted, the next step is fortification. This phase isn’t simply about being safe; it’s about striving for excellence by setting new safety benchmarks.
Before taking on the new, firms must ensure safety, compliance, and data protection are upheld. This isn’t just about legal obligations, it’s the guarantee of a firm that clients see as a trusted partner for their sensitive information.
For example, 26% of legal professionals we surveyed believe their firm is less prepared for a cyber-attack than last year, which is a clear indication that firms are aware of the increasing risk, but have not make the action to fortify their firm.
A strategic transition, be it in services, territory, or anywhere in between, can only be called successful when it’s shielded by compliance and security. Safeguarding operations through pre-emptive steps is the recipe for a successful risk management strategy.
Crafting policies
Policies reduce decisions to a set of predefined choices. They assist in maintaining the integrity of a firm’s growth plan and its risk architecture, ensuring that even as the firm evolves, its backbone of safety remains unyielding. Every operational decision has an element of risk. Policies impart not just a method but a mindset of valuing the long-term health of the firm above immediate, tempting gains.
From the experienced counsel at the table to the codified principles in the system, tips for managing risk cut across all layers of a firm. It’s about honing instincts through practice and process, making risk management an organic part of the firm’s daily life.
With robust policies and proactive measures, law firms can ensure not only its own survival but its status in a competitive and ever-evolving legal marketplace. Riding the wave of strategic, safe growth, law firms can make headlines not for risks untaken, but for challenges deftly managed and successes confidently claimed.
