Managing day to day risk and learning from our mistakes.

This article is based on a previous webinar that I listened to that Amy Bell and Karen Eckstien ran in which it noted some critical points in relation to dealing with the important considerations and opportunities afforded to us as legal professionals to manage the risks we face day to day and how we can learn from our mistakes.

Most professionals can probably agree on a common goal, ‘to prevent the messes in the first place’. A key part to prevention is building compliance that works. This is fundamental in being able to demonstrate to others external to the firm, resilience and reflection on the internal policies and procedures. ?

Within the legal sector it has been widely reported that professional identity insurance has seen huge increases, with firms experiencing a minimum of a 20% increase.

How can employees and firms combat or limit the increase in premiums? Prepare early, do not treat it as a tick box exercise, utilise a specialist, if there is an awareness of something that taints the firm (demonstrate that the taint has been removed, considered and how it has been managed to prevent re-occurrence), put in the work and the time to the process, demonstrate the firms’ value on the proposal form and view it as a standalone document (if it is not written down how can it be considered).

If a problem is identified within, root cause analysis should be considered for each instance. The purpose of this is not to blame an individual but to investigate the different factors which have enabled the ‘incident’ to occur. In doing this it can allow for effective changes and prevention to limit the recurrences.

Do not merely scratch a surface this is not effective it is crucial to dig down below the surface! If the root of the ‘incident’ is missed it is likely to occur again, increasing the risk exposure. Do not stop at human error, as this is highly unlikely that this the ultimate root.

As a firm or as individual within do not feel ashamed in near misses. Feel confident and empowered to share these experiences with others. These experiences add real value to the workplace, it makes others more likely to speak up, not feel alone, allow them to identify other risks in future and not to bury them. ?Consider how to make a positive environment to harbor these chats, create a safe environment where staff are confident in the knowledge that they will not be judge or penalised for asking for help or alerting a person to an underlying issue.

Ensuing that the culture is embedded through the firm, sets the right undertones to all staff regardless of level or position. Risk is endemic through firms at all levels, risks may change but are still present! Consider carefully reporting lines or lines of support be it internal or external. An interesting observation, in most firms this is automatically a person’s line manager, generally the same person who manages their career/development opportunities. Given this firms may find people are burying their heads in the sand and not speaking out for fear of repercussions, insecurity, stress and compromised in their decision. It is only then report when an individual feels there is no other choice. This makes rectification and action must harder.

Within the conveyancing sector now there are real risks that are exacerbated due to several factors outside of the control of the staff and in some instances the firms. Even if those risks do not transpire into meritorious claims it is inevitable that there will be claims and complaints arising out of these risks. This will have a considerable impact on the staff and on the firm.

We are all human and everyone at one time or another within their careers will make mistakes, it would be superhuman not to, it is how we deal with this that help shape our careers and help share the firms we work within. ?

How can we make a difference?

Record! Record! Record! Ensure file records are documented for example: What is happening at each stage? What has been found or identified? What has the client been informed of, when were they informed and by what means? Why can the matter not proceed further?

In the remote world we are currently operating within or transitioning out of to a degree, identify signs in others is crucial. If you are a supervisor or even as a colleague some of the following may apply. How to monitor, motivate, communicate and supervise. Working remotely has added an additional layer in complexity. Remote working makes identifying a gut feeling a lot harder, phone calls cannot be overheard, people’s faces and expressions cannot be seen. Make a conscious effort not to solely focus on ‘the work’ aspects, be visible and personable, build trust and relationships. ?

Data collection and analysis can help fill the gaps and assist in identify where and who requires support. Take action! Do more file review, stack the odds in a favorable light. Whilst it is not profitable on paper as a fee income ultimately regarding risk exposure and learning it will be invaluable. ?Remember the key is to get curious ask why? ?