The true cost of claims
Getting fee-earners and partners to accept the need to comply with risk management procedures is not always easy.
Often, such procedures are regarded as bureaucratic and, by some, as simply a waste of time. Having to dissuade members of the firm of such thoughts can be difficult.
One way of concentrating minds is to talk about money, and claims cost a great deal. Costing a claim can be a salutary exercise for a firm. Therefore, the following factors need to be taken into account:
If fee-earners or partners are prepared to ignore the need to manage risk and expose the firm to such large financial risks, then one has to question their commitment to the firm.
This column was prepared by Alexander Forbes Professions, a division of Alexander Forbes Risk Services Limited
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