Lawyers face risk every day as an inevitable part of their practices. It is impossible to eliminate all risks, but by adopting appropriate risk management policies and procedures lawyers can control risk and simultaneously enhance the quality of service to clients and improve firm profitability. The risks inherent in a lawyer’s practice are amplified during an economic downturn. Lawyers face the likelihood of a reduced amount of business, which creates both income and overhead – particularly headcount – concerns. At the same time, lawyers and law firms are likely to face an increase in the number of malpractice claims, as well as claims brought by third parties alleging breaches of a fiduciary duty and fraud, and, possibly, claims by partners for management liability. Lawyers and law firms are often viewed as the last “deep pockets” when deals fail or formerly “good” clients go bankrupt.Read More
