The following Practice Compliance guidance note provides comprehensive and up to date legal information covering:
A risk management policy outlines the risks posed to a business and provides a set of actions to be taken to both prevent the risk from occurring and reduce the impact of the risk should it happen.
This Practice Note provides a guide to the features usually included in a risk management policy.
You must run your business or carry out your role in the business effectively and in accordance with proper governance and sound financial and risk management principles.SRA Principle 8
The SRA does not define the risk management principles that it expects you to employ when running your business. Instead, it describes outcomes you must achieve in order to comply with the SRA Principles. The most relevant outcome requires you to identify, monitor and manage risks to compliance with the SRA Handbook and take steps to address issues identified. SRA Code of Conduct 2011, O(7.3)
Although there is no strict regulatory requirement to develop a risk management policy, doing so will allow you to identify, monitor and manage your risks and will provide evidence to the SRA that you are:
running your business in accordance with sound risk management principles, and
managing risks to compliance with the SRA Handbook
An up-to-date, comprehensive risk management policy will be a very useful tool in any dialogue with the SRA.
Having such a document will make it much easier for the SRA to engage with you with a view to resolving any compliance issues. The SRA has said on many occasions that firms demonstrating a responsible approach will be supported, making the need for enforcement action less likely. Firms without a
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234