Risk managementSelf-assessment risk auditLaw firms should by now have received a copy of the Solicitors Indemnity Fund (SIF) self-assessment risk audit, which was sent out last week.Created by the risk management department of the SIF with the help of leading risk management consultants, it should prove to be a useful tool for the solicitors' profession.The audit is designed to help firms identify practice areas where they are exposed to risk.

If used effectively, it should also help firms to make themselves more attractive to insurers in the open market.The SIF has a long history of promoting risk management.

Even after the decision to discontinue the mutual fund was taken, this work was continued in the interests of the profession as a whole.

It has culminated in the development of the risk audit.

The audit has been designed for use by firms of all sizes, irrespective of their gross fee income, claims history, type of work or any quality standards they may have obtained.Part of the development process involved field-testing by a panel of 30 firms, ranging from sole practitioners to those with over 150 partners.The audit consists of eight modules, each covering an area that in SIF's experience produces a high volume of claims.

A 'check-back module' has been included for completion by staff to validate answers provided by partners.Firms should complete the module in their own time and assess their overall score.

They should then be able to identify areas in which their firm is exposed to risk.Do not be too depressed if your first attempt results in a low score.

The way to improve becomes very clear.

And this is the most obvious benefit the audit will bring to a firm.

Once you have identified the areas where you are exposed to risk and taken the necessary steps to reduce your exposure, you can try the module or modules again.

Your results can only improve.The SIF has no plans to monitor scores achieved by firms.

This is a matter for the firm alone.With the advent of open market insurance, the profile of risk management has increased dramatically.

Insurers expect firms to have effective risk management systems in place to reduce their exposure to claims.Please read the introduction carefully before attempting the audit.

Once completed, analyse the results, identify the risk areas affecting your firm and take appropriate steps to reduce the risk.The cost of completing the audit could be much less than the cost of dealing with avoidable complaints and claims.X For information on claims prevention, contact your claims handler at the Solicitors Indemnity Fund or the Risk Improvement Unit, tel: 020 7566 6000.