Mitigate risk by building a proactive compliance culture within your law firm

In this conversation for Osprey Approach’s podcast, Empowering Law Firm Leaders, David Gilmore, director of DG Legal – the largest provider of strategic and compliance services to the legal sector in England and Wales – shares insights on how law firms can prioritise compliance and mitigate risk.

David joined Amy Bruce, marketing director at Osprey Approach, for episode four of the series, offering practical advice for leaders navigating an evolving regulatory landscape.

David’s three lessons for running a successful modern law firm

Drawing on decades of experience working with thousands of legal practices, David highlights three essential strategies for success.

First, be contactable. “I find it very odd that most law firms are not responsive after 5pm, and some don’t answer the phone at lunchtime. If you cannot answer the phone during certain times then use a telephone answering agency. The costs involved would be more than mitigated by the additional clients you would get.” Being available shows clients that their needs are valued and can directly impact business growth.

Second, turn your organisation chart upside down. Reception staff and those on the front line are often the first point of contact with potential clients. “The way a potential client is treated makes all the difference in turning them into a paying client,” says David. For high street firms especially, first impressions are critical, and valuing front-line staff can enhance client satisfaction.

Finally, get ideas from across the business. David has observed that some of the most innovative solutions come from support staff. “Some of the more successful firms I’ve worked with get the staff involved in the business and marketing plan,” he shares.

Three best practices law firms should implement to mitigate risk

David shares three best practices that help law firms proactively mitigate risk and avoid errors.

Prioritise Training

David believes managing risk starts with training to ensure everyone is clear on what is expected and that no one is assuming tasks are being completed. “The SRA are very keen on what they call outcome focused regulation. They’re not particularly prescriptive, so it’s up to law firms and lawyers to work out a system which is compliant.”

Maintain a Risk Register

“The most important central record is the Risk Register. It’s not mandatory to have one, but if the SRA asked and you didn’t have one, I think it’ll be quite hard to define your position.” The Risk Register helps not only to identify the risks that impact your firm but importantly, the processes, skills, and tools needed to minimise and avoid the risk all together.

Complete file reviews

“File reviews also aren’t mandatory, but if a law firm got in trouble, one of the questions the SRA will ask is ‘do you have a file review process?’ and they’ll consider if the file review process is just a tick box exercise”.

Creating a culture that prioritises compliance

Embedding compliance as part of a firm’s culture ensures that risk management becomes habitual and part of the foundation of the business. Leadership plays a critical role in modelling the right behaviours: “Staff should be praised for raising problems rather than burying them,” David explains.

He points out that many firms still maintain a two-tier culture, placing lawyers above support staff. “The support staff are so valuable; I believe they should be given the same status as a fee earner.” Aligning the entire team around shared values encourages everyone to take ownership of compliance.

Mistakes are inevitable, but how they are handled matters. David notes that regulators like the SRA look for evidence that lessons have been learned and preventive measures have been implemented to avoid repetition.

Tips for keeping up to date with evolving compliance requirements

David shares his three top tips to help firms remain compliant:

Subscribe to newsletters – “I would start by subscribing to the various bulletins. Some are free, such as the SRA’s compliance bulletin, which is very good. There’s also the Law Society’s Practice Notes service.”
Buddy up with other firms – “I would consider buddying up with other firms to share experiences and best practices.”
Have a system – “Unless you’re a large firm, keeping on top of compliance doesn’t need to be a full-time job. Once you have a compliance system in place, it really shouldn’t take much of your time to maintain.”

David explains that documenting policies, creating a central system, and regularly reviewing files make compliance manageable and proactive.

Reducing risk in SME law firms requires a proactive compliance culture

No matter the digital tools, policies, or procedures you have in place, mitigating risk and staying compliant will only become easier if you instil a culture of proactive compliance.

David emphasises the importance of team training and aligning success measure in building a compliance-focused culture. When management are seen to prioritise and model behaviours of compliance, this is inevitably reflected in the behaviours and habits of the whole team.

Watch the full interview with David Gilmore now to discover more advice and guidance on mitigating risk in your law firm. You’ll also hear David’s exclusive advice on what SMEs should be looking out and preparing for in regard to the future of compliance and three best practices law firms should implement to mitigate risk.

Kindly shared by Osprey Approach