The risk management policy—regulatory requirements
The risk management policy—regulatory requirements

The following Practice Compliance guidance note provides comprehensive and up to date legal information covering:

  • The risk management policy—regulatory requirements
  • SRA Handbook
  • Why have a risk management policy?
  • What is a risk management policy?
  • What purpose does it serve?
  • Interaction with the risk register

Effective risk management is a cornerstone of the Solicitors Regulation Authority Handbook 2011.

The SRA has emphasised that all firms must take a risk-based approach to compliance and managing their business. To do so, firms need to identify and assess the risks they face and have a plan to manage them.SRA Delivering outcomes-focused regulation Policy statement, 30 November 2010 (now defunct)

SRA Handbook

The SRA Handbook commences with ten SRA principles. These are mandatory and apply to every aspect of practice.

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