Risk management resolutions

Written by Anna Forsyth and Matthew Thomson, Lockton, Society strategic partner

Here are five suggestions for risk management resolutions for law firms in 2025, provided by Lockton.

Welcome to 2025. A fresh start. A time for new goals. A survey from YouGov highlights that more than a quarter of Britons plan to make New Year’s resolutions for 2025. Personally, I’m planning to stop eating my own bodyweight in chocolate.

The beginning of a new year can be a good time for law firms too, in terms of preparing for the months ahead. Solicitors might want to spend some time thinking about the risks that might emerge in 2025 and pause and reflect on the effectiveness of their existing risk controls and practices. It’s a useful exercise, as risk management goals can support a firm’s overall strategy and values and help prevent future claims and complaints.

With that in mind, here are five suggestions for risk management resolutions for law firms in 2025:

1. Start Saying ‘no’

Why not make it your resolution for 2025 that you will not take on any new work (even for established clients) if you have concerns about the professional risks involved?

Solicitors are, generally speaking, under no obligation to act for a client. The situation becomes more challenging after they have taken on the work as it might be more difficult to withdraw from acting. (If you find yourself in this position and need advice I would suggest contacting the Law Society of Scotland’s professional practice team.)

However, if when conducting your initial client and transaction due diligence it’s clear that an aspect of a case is likely to lead to professional risks, don’t be afraid to decline it or suggest that the enquirer approaches a different firm that might be more suited to handling such a case.

There are often questions to ask yourself when considering a new piece of work. Is the timescale achievable? Is the outcome deliverable? Saying ‘no’ to unsuitable cases will, in the long run, do much less damage to your firm and its reputation than taking on cases that you’re not able to deal with properly.

2. Keep clear records of client interactions

Keeping accurate records that you can access on the client file is still key to defending claims, so it should be high on your list of goals for this year.

With remote and flexible working now a common fact of working life, there are many different ways of communicating with clients and colleagues. Ensure that the new ways of working incorporate the old, important file management aspects. For example, I am a great believer in the importance of writing things down. This might seem awkward to do, when you’re face-to-face with a client over a video-conferencing screen. However, having the discussion points captured accurately is critical, so that those working on the file are aware of the up-to-date information. Otherwise, mistakes will happen, and claims will follow.

I would add that we now live in a world of text speak and abbreviations. File notes should be clear and understandable. If you write ‘client meeting with Mr Rogers to discuss next steps in his divorce action’, that is completely different from writing ‘MTG W CLNT 4 DIV STEPS’. The same goes for internal communications between colleagues. Try to ensure that you write a message that will be capable of being understood many years from now.

3. Prioritise health and wellbeing to combat pressure of work

It’s important to understand the link between stress and work performance. Although a Master Policy claim might present as a simple procedural oversight, such as a missed deadline or a failure to register title, in many cases stress or poor health might be at the heart of the problem.

If solicitors find themselves tired, stressed or anxious, this may result in unexpected errors of judgement and this, sometimes in combination with the specific circumstances, can result in claims.

Why not make it your resolution for 2025 that you will implement strategies to encourage fee-earners to seek help if they are struggling? Supervision is key to staff wellbeing, so you might also want to take steps to ensure that those engaged in management or supervision roles are alert to these issues. Schedule some regular time in diaries to allow for fee-earners and others to share information and allow for plenty of opportunities for colleagues to ask for support on problem files.

There are a range of different prevention techniques and initiatives that firms can implement and develop to combat stress and mental health issues in the workplace. Take a look at the Law Society’s wellbeing pages, where you’ll find a wealth of resources to support firms on their journey to building wellbeing strategies. Mental health charity LawCare is also a great source of information; as well as a dedicated helpline for lawyers, it provides peer support, webinars and online courses.

4. Focus on cyber risks

Take control of your cybersecurity risks in 2025. We see cyber-related issues play out across all professional service sectors, and law firms are often seen as prime targets because of the client data that they hold. From fraudulent emails and phishing links to malware and ransomware attacks, it’s more important than ever that firms take steps to protect themselves.

If you are unsure of the protections you have in place, or if you know your firm’s security needs an upgrade, the Law Society’s cybersecurity guide is a good place to start.

5. Remember your targeted risk management training

It is critical that risk awareness is maximised by appropriate risk management training.

All solicitors who hold a practising certificate need to do a minimum of one hour risk management CPD as part of the existing 20 hours of annual CPD. Solicitors can decide how they wish to satisfy this requirement and both the Law Society and Lockton deliver dedicated risk management training, both in-person and online.

‘Risk management’ is a broad concept and covers topics that are wider than simply Master Policy claims avoidance. For example, risk management would also include anti-money laundering, cybersecurity, complaints handling, contingency planning, conflicts of interest, time management and any other topic that involves the process of identifying, assessing and prioritising risks, which results in some form of action to control and manage those risks.

For 2025, why not take steps to find the most appropriate risk management training that best addresses your specific needs? Please do get in touch if you would like to discuss your requirements.

And don’t forget to consider future risks…

It’s difficult to make predictions about the future for lawyers. From macro-economic factors to client demands and new technologies, there are many areas where significant changes could present both challenges and opportunities in 2025. If the past few years have told us anything about managing risk, it’s that no matter how much we plan, unexpected risk events will materialise with little warning. This was particularly the case with the Covid-19 pandemic.

One area where solicitors can prepare is by keeping their knowledge up-to-date on any upcoming legislative or regulatory changes that might impact their particular area of practice. In this regard, in future articles, we’ll look at the extent to which emerging, professional risks can be anticipated and proactively controlled to minimise practices’ exposure to future claims. The idea is to figure out which risks could potentially have the greatest impact and to determine what practical controls to have in place so that solicitors are prepared if they do arise.

In the meantime, we’ll be looking to engage with solicitors to support their risk management activities and continue to generate risk management content in conjunction with the Law Society of Scotland. We’d like to hear from you – what are your risk management priorities going to be over the next 12 months and how can we help?

Written by Anna Forsyth and Matthew Thomson at Lockton, as part of their partnership with the Society