The SRA has published its third Risk Outlook. The Outlook is the SRA’s assessment of the most significant risks law firms will have to address over the coming 12 months.
The purpose of the Risk Outlook is to communicate the SRA’s view of risk in the legal services market, demonstrate the priorities to which the SRA will allocate its resources, explain how the regulator will control these risks and act in the public interest and to help solicitors and firms manage risk.
The Risk Outlook is divided into two sections. The first sets out the factors that the SRA believe are driving change in the legal market, and the second discusses each of the eight priority risks which are:
- Failure to provide a proper standard of service particularly for vulnerable people
- Misuse of client money
- Lack of a diverse and representative profession
- Lack of independence
- Failure to act with integrity: improper or abusive litigation
- Information security and cybercrime
- Bogus law firms
- Money laundering – inadequate systems and controls over the transfer of money.
The SRA state it is important that firms try and manage these risks in order to help support the rule of law and the proper administration of justice, whilst providing proportionate protections for users of legal services.
Each of the priority risk includes:
- A description of the risk
- Why the risk matters
- Trends of the risk
- Information on SRA controls over the risk
- Case studies based on real events
- Information on how to manage that risk within a firm
Along with the publication of the Risk Outlook, the SRA have produced a webinar to provide a detailed overview of the Risk Outlook.
To view/download the Risk Outlook and webinar, click here.