Risk management

Importance of training

When we talk about putting risk management procedures in place, we do not just mean inviting an adviser into a practice to discuss potential minefields.

We also do not mean simply setting up a system which incorporates all the advice given by the risk consultant.

While both of these are valid parts of risk management, they need to be accompanied by training.

Lawyers are good at their jobs when it is to do with the business of the law.

However, many are slightly less astute when it comes to the actual running of a business.

Our research has shown that lawyers can answer most questions on their specialist legal areas, but on the day-to-day running of a practice they are not such experts.

Therefore, within a practice everyone should not only know the risk management procedures being introduced, but should also understand them.

Our research shows that while many lawyers can recite the areas of risk to be found within their practice, many have not actually stopped to consider what this means.

The result of this is that they do not fully comprehend why these procedures are necessary and, therefore, do not implement them properly, running the risk of mistakes being made.

The training also needs to be not only educational, but relevant.

It must teach staff the importance of risk management while also addressing not only business issues but also issues which are pertinent to the individual.

If the training does not relate to someone's particular area in a way that they can understand both the rationale and benefits behind it, chances are they will not incorporate the new procedures into their daily routines.

Another important aspect when training staff in risk management is reviews.

It is not enough simply to train everyone once and stop.

A risk management consultant will insist that all procedures are reviewed on a regular basis.

This is also true of training.

While it will not be necessary to retrain all staff annually, it is a good idea to check that they are still up to speed on and implementing all areas of risk management within the practice.

To reap the benefits of good risk management - namely, to have fewer claims of negligence against the practice and a subsequent reflection in professional indemnity insurance premiums - procedures need to be embedded in a firm's culture.

The best way to do this is to ensure that everyone knows about, is trained in, and understands fully all risk management strategies within the practice.

This column was prepared by the Alexander Forbes Professions risk management team