Risk management: 69% of US firms delegate specific role

More than two-thirds of US law firms have a designated general counsel to deal with risk management issues, research revealed last week, in a trend that is also gaining pace on this side of the Atlantic.


The survey of 200 US law firms by management consultancy Altman Weil showed that some 69% now employ in-house counsel, 92% of whom are partners.


Almost a third of law firm general counsel are employed full-time in the role, according to the survey. Their remit includes advising the firm on general liability, professional responsibility, conflicts, ethics education and representing the firm in disputes.


Nick Jarrett-Kerr, a partner at legal management consultancy Edge International and former managing partner of Bristol firm Bevan Ashford, said: 'Some UK firms are moving towards this kind of role, though they are tending to call it partnership secretary, director of quality or risk partner, rather than general counsel.


'What is coming across to me lately is a growing awareness of compliance legislation, as well as increasing Law Society regulation on conflicts, discrimination and the new financial services rules. Having one person in control of this gives it a strategic focus. But it will depend on the size of the firm.'


Chris Perrin, head of conflicts at magic circle firm Clifford Chance, said: 'My role involves anything that could be a potential risk to the firm, such as conflicts, insurance arrangements, claims or complaints against the firm, professional standards and quality, and public relations. Having someone with an overall perspective on risk management means there is always someone who is accountable, and so things do not fall between two stools.'