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Common law firm risk management challenges that businesses face

It doesn’t matter if you are a group of 50 attorneys or an independent lawyer, you should have proper law firm risk management processes in place that are easy to use and understand. This is important to a business that deals with confidential and sensitive clientele information. In this article, we look at the most common law firm risk management challenges and explain why you need advanced risk management software applications for a successful and secure law firm.

Cyber threats

Cyber attacks top the list of the prominent threats that any business can face today. Some of the common cyber crimes like social engineering and hacking cost businesses a significant amount every year worldwide. As law firms store sensitive information about their clients on computers, this makes them a popular target to hackers.

Although technology has made it easy for lawyers to communicate with clients, certain risks are more likely to happen when working with computers. A law firm risk management plan would be an excellent idea to monitor and mitigate current risks. It is imperative that law firms outsource cyber security experts to maintain the security of their sensitive and confidential information.

Human error/negligence

Occasionally, law office assistants make mistakes which ultimately cost the company money. Errors such as downloading infected files and incorrect data entry might have severe outcomes. It makes sense to have the entire team educated on the best ways to avoid such blunders and curb web-based exposure.

Technology advancements

Your IT department might find it challenging to keep up with technological advances. This creates opportunities for cybercriminals to steal or expose vulnerable data. You should always do your best to update your systems regularly and understand vulnerabilities that may arise. This will make sure your firm does not fall behind.

Mobile technologies for the office

Mobile technology has forced radical shifts in the workplace. With employees being able to access databases from remote places, a breach of data is increasingly likely. It is crucial to understand the dynamics of mobile technology to minimise the risk of losing or corrupting client information.

Acquisitions and mergers

Acquiring or combining with another firm might result in sharing data, leaving exposure. Although these moves are necessary for the growth of the law firm, you should ensure adequate preparation is done before taking or sharing information.

Malware attacks

Malware is defined as malicious software that can damage or disrupt the normal functioning of a computer system. It may present itself in form of ransomware, adware, worms, phishing, spyware, etc. Such attacks can slow down internet connectivity in your office, disable programs, spam your mailing list or rob your law firm of vital information. The problem with malware is that it gets more complicated and aggressive with time.

As a law expert, you have the responsibility to protect your networks and systems from malware. Knowing the best software solutions to combat them is fundamental. Have you considered bespoke software that can track your networks, automatically update systems, and alert you on areas that require immediate response and recovery?

Legal disputes

Risk management plays an important role in avoiding litigation issues. Costly legal disputes may arise from poor communication and inefficient drafting of agreements. If your business is struggling to operate at low costs, then you need a proactive approach to mitigate litigation risks. It is important to have documents with clear terms for the parties involved. Have those terms reviewed regularly and maintain proper correspondence between stakeholders.

A major challenge facing law firms is improper document management when investigating individuals or entities. Any exchange of information between a lawyer and a client should be done in a transparent manner without fear of leaking to third parties. Lawyers must be careful when forwarding emails to ensure that the matters of concern are not disclosed to the wrong people. Labelling communications as confidential would go a long way in protecting the information.

Law Firm Risk Management Software Solutions

Alphatec provide several software solutions to help with law firm risk management and even if these challenges appear daunting do get in touch with us today to find out how our solutions can help your law firm become more effective.

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