Reviewed by: Susan Sloman
Author: The Law Society
Publisher: The Law Society Publishing
ISBN: 9781853289125
Price: £49.95

Effective risk management has become increasingly significant within the legal profession in recent years. With the advent of the new risk-based regulatory regime on 6 October, firms will have to comply with principle 8 of the Handbook, and ensure that the running of the business is ‘in accordance with proper governance and sound financial and risk management principles’.

The timing of the appearance of the Lexcel Risk Management Toolkit is therefore very apposite. Whereas previous Law Society publications (such as the Lexcel Office Procedures Manual (4th Edition) and the Risk Management Guide) have focused on giving theoretical guidance, the Toolkit is primarily a practical resource, which not only explains what should be done but also provides some useful examples of how to do it.

Lexcel establishes a systematic framework within which practices can address risk issues. Accredited practices, familiar with the concepts of strategic, operational and regulatory risk, will recognise the various templates, some of which have been only slightly amended from previous publications.

However, much of the material is new, for example the two sample risk registers and the sample risk management action plan. Implementation of an action plan is essential if risks identified by the practice are to be addressed effectively. It is likely that the Lexcel Risk Management Toolkit has been developed with this in mind.

The text is divided into 10 short chapters entitled ‘The risk management framework’, ‘Types of risk’, ‘Risk assessment’, ‘Risk response’, ‘Risk monitoring’, ‘Risk management culture’, ‘SWOT and PEST analyses’, ‘Risk mapping’, ‘Health and Safety’ and a ‘Glossary’. There is an explanatory section at the beginning of each chapter and, where applicable, this is followed by a set of relevant templates, flowcharts, agendas and so forth.

For instance, the chapter on risk monitoring discusses ongoing monitoring, the annual strategic review of risk and record keeping, and provides examples of a risk-data analysis form, strategic risk review agenda, and sample minutes of a strategic review and action points. The documents can also be accessed by way of the accompanying CD-ROM.

There are templates for risk management and health and safety policies. These differ from those in earlier publications as they have been expanded and also require the signature of the person with overall responsibility. Whether this change is because of the preference of the author, or is to be a prerequisite of Lexcel v.5 remains to be seen.

As there are only 66 pages and the material is concisely presented and easy to follow, this book does not take long to read. However, reading it is one thing, putting it all into practice another. Anyone familiar with the process of identifying, evaluating, responding to and monitoring risk will be aware of the time each stage can take, especially when first introducing risk management into a business. This should not be underestimated.

Furthermore, for effective risk management to be embedded everyone must be involved and engaged - and this rarely happens overnight. Included in the book are new specific role definitions for risk manager, complaints manager, money laundering reporting officer and supervisor, emphasising the importance of sound management in establishing an appropriate risk culture throughout a firm.

The Lexcel Risk Management Toolkit will be useful for those developing a systematic approach to managing risk in their business. These are uncertain times for the legal sector and anything which assists it in rising to the challenge of risk management is welcome.

Certainly practitioners may find the task less burdensome if they have reference to this publication, so there is reason to expect that the Lexcel Risk Management Toolkit will be found on many practice bookshelves in the not too distant future.

Susan Sloman is an authorised Lexcel consultant and a non-practising solicitor

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