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Law Firm Operations

Law firm operational risk: what partners should know

Legal risk is well understood. Operational risk often isn't. Here's what every partner should have visibility over.

Partners typically have strong visibility over legal risk — file review, PII, trust compliance. Operational risk usually gets far less attention, and usually costs more when it goes wrong.

The categories partners should see

Key-person dependency

Which operational areas would fail on day one if one specific person left?

Supplier concentration

Which single suppliers, if they failed, would materially disrupt the firm?

Renewal exposure

What contracts are approaching renewal in the next 6 and 12 months, and what's the total value?

Insurance and compliance

Is professional indemnity current? Cyber cover in place? Trust obligations documented?

Cybersecurity posture

Backups tested? MFA enforced? Incident response documented?

Technology continuity

What happens if practice management, document management or trust accounting is unavailable?

Reporting it upward

Partners don't need a 40-page document. They need a one-page operational risk view they can act on. That's what an operations register enables — see the Operational Risk Assessment Template.

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