Can you take the risk?

For some time, insurance experts, the Law Society and even the Gazette itself have attempted to alert practitioners to the pitfalls of poor risk management.

Although - as the publishers of a weekly good practice advice column on the subject - it pains us to admit, shockingly few law firms are paying attention.

As we report this week, a survey has shown that while partners may consider risks in the abstract, only 10% of firms have implemented controls to reduce potential hazards.

That is a figure of some concern in an increasingly risky world.

For quite apart from the damage to reputation both within the profession and with clients, there is the pure cost implications of taking a slack approach to risk.

In this issue we also report on the likely increases to indemnity insurance premiums when policies come up for renewal this September.

With some experts forecasting an average rise of 40% in rates, practices would be well advised to think long and hard about their management practices, if for no other reason than the fact that indemnity insurers certainly will casting that critical eye for them.

This is perhaps an easier message for the larger commercial practices to heed.

They have the resources to devote to practice management and risk avoidance.

Many smaller firms find themselves swamped in an effort to make ends meet, and they may view the finer points of practice management as a luxury.

However, to do so would be a risky business indeed.