The SRA Code of Conduct 2011 introduces 10 core principles that must be followed by all regulated firms.
Principle 8 provides that 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’
Chapter 7 provides the outcomes that you must achieve to ensure that you satisfy Principle 8. One of the indicative behaviours that will show that you have achieved the outcome is by identifying and monitoring financial, operational and business continuity risks including complaints, credit risks and exposure, claims under legislation relating to matters such as data protection, IT failures and abuses, and damage to offices.
Firms’ compliance with Chapter 7 will be reviewed by the SRA as part of their audit programme.
A firm will only be considered to have complied with the rules if they have identified, evaluated, monitored and regularly reviewed their risk management procedures.
Quality Rating can help you do all this cost efficiently, to the requirements of the Law Society’s Lexcel Quality Standard.