Law firms must address business continuity, warns Marsh

UK law firms must address business continuity management (BCM) responsibilities ahead of the introduction of the new Solicitors’ Code of Conduct on July 1 2007 and many may be failing to do so, according to Marsh.

The Solicitors Regulation Authority – Solicitor’s Code of Conduct (2007) will increase the emphasis placed on business continuity requirements, encouraging law firms to keep the risk of disrupting client business to a minimum, said Marsh.

Martin Caddick, Head of UK business continuity management at Marsh, commented: “Recent research suggests that whilst larger firms tend to have some form of business continuity plan in place, 37% of all firms have made only basic arrangements, and more than a quarter do not have a business continuity plan at all.

“By ignoring BCM, these firms are not only risking regulatory non-compliance, but they are putting their business at risk by failing to act on a key number of risk issues that are fundamental to law firms of all sizes, such as reputational risk, continuation of operation, and protection of information.”