How modern law firms can mitigate risk and stay compliant with legal tech
Practical guidance and tips.
Alex Simons was delighted to take part in the second webinar series of Osprey Approach’s Build Better Habits, joining panellists Karen Edwards, head of professional development at the ILFM, and Amy Bell, owner of Teal Compliance.
Hosted by Amy Bruce, head of marketing at Osprey, the webinar enabled us to share practical guidance and tips with attendees on how modern law firms can mitigate risk and ease the compliance burden by adopting legal technology.
Mitigating risk by being data focused and adopting the right digital tools.
- Firms must have access to the right technology tools and data to take a proactive stance on compliance, rather than reactively dealing with issues.
It’s the basics throughout the accounting processes that cause SME law firms the most compliance issues.
In dealing with conveyancing processes involving thousands of pounds in a hybrid team, an outdated paper-based system becomes ineffective. The CMS system of the firm needs to be kept up-to-date and all data and actions recorded accurately to create an audit trail for compliance. compliance.
Habits law firms should adopt to ensure they stay compliant.
Modern law firms should focus on the following digital habits to mitigate risk and stay compliant, as agreed by all.
1. Implement control mechanisms.
Firms should implement control mechanisms in the technology to reduce their reliance on people, according to Amy. Karen recommends using workflows to standardize operations and monitor file management behaviors.
2. Be disciplined with your data.
Firms should capture all data digitally on a file, including key dates, client details, and communications, so that anyone can pick up the file and make progress.
3. Stay curious.
Amy suggested that firms should consider why people are not complying with requests if they dislike something, and find solutions accordingly. It’s important to analyse the tech usage and get feedback
Further useful tips for law firms to stay compliant.
4. Update little and often.
Firms should do this to avoid compliance errors. If something goes wrong and you’ve not updated your files, it will be picked up on an audit. If you’re in the habit of leaving things late, it will also get picked up in an audit and will be highlighted as a systematic problem.
5. Review and report regularly.
Individuals should have access to data for their proactive compliance monitoring, according to Alex. Residual client balances are seen regularly as an issue, and this is being closely monitored by the SRA.
You can report every week and send the data to fee earners to action. Tech makes that a lot easier; Osprey has automated reports for example.
6. Set up before you start.
The Law Factory recommends setting up a new software project properly before the wider team uses it to ensure compliance and effective use.
If you provide a blank template to employees they may find workarounds and get into their own bad habits.
7. Prioritise continuous training.
Firms must ensure that continuous training is in place to effectively use the digital system and enter the right data. Users effectively use tools when they are continually trained, which not only boosts their confidence but also allows them to maximize the tools’ advantages.
Implement digital habits to build a solid foundation for compliance and risk management.
Implementing the right digital tools, adopting effective habits, and capturing the right data is crucial to proactively mitigating risk across your business. Being proactive will help you stay one step ahead of detrimental financial or reputational damage that is linked to compliance breaches.