There is a widely accepted definition of risk, ie:
Risk = probability x impact
So, for any given risk faced by your business, there are two questions:
how likely is it that the risk will materialise, ie what’s the probability?
if the risk does materialise, how bad will it be, ie what’s the impact?
See Practice Note: Protecting your practice—an introduction to law firm risk management.
You must identify, monitor and manage all material risks to your business.
This obligation extends to risks that may arise from a connected practice, ie a person, company, LLP, partnership etc, that is connected to your firm by virtue of:
being a parent undertaking
being jointly managed or owned, or having a partner, member or owner in common, or being controlled by your firm
participating in a joint enterprise or, across its practice generally, sharing costs, revenue or profits related to the provision of legal services with your firm
common branding
You must actively monitor your financial stability and business viability—once...
To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.
**Trials are provided to all LexisNexis content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisNexis services please email customer service via our online form. Free trials are only available to individuals based in the UK, Ireland and selected UK overseas territories and Caribbean countries. 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.
The Office of Financial Sanctions Implementation (OFSI) has updated its ‘UK financial sanctions guidance’ to include a factsheet for overseas...
The European Data Protection Board (EDPB) has adopted Statement 3/2026 welcoming the European Commission's updated frequently asked questions (FAQs)...
Law360, Expert analysis: On 29 September 2026, the UK introduced a new package of Iran sanctions targeting the finance, energy, shipping, software and...
The Information Commissioner’s Office (ICO) has published guidance on artificial intelligence (AI)-assisted subject access requests (SARs) under...
Risk management—key risks—law firmsEffective risk management is fundamental to the commercial success of law firms. To manage risk effectively you must first identify the risks that could impact on your business. This Practice Note identifies some common risks facing law firms to help you formulate
What is the difference between an appeal and a review?What is an appeal?An appeal in insolvency proceedings is no different to an appeal in normal litigation. An appeal will be allowed only if the appeal court is satisfied that the decision of the lower court was 'wrong' or 'unjust because of a
If a rentcharge is shown as being informally exonerated on title information, does this apply to the current registered owner? Or does the informal exoneration only apply to the parties to the document which informally exonerated the rentcharge?This Q&A considers the situation where, at some point
Glossary—Latin legal termsDespite attempts in recent years to simplify the language used in legal cases, there are still a number of Latin phrases commonly used in personal injury claims. The following Latin phrases are listed in alphabetical order:Latin termDefinitionMeaningActa iure imperiiLegal
0330 161 1234