Law Firm Risk Management and Peer Review

Abstract

This article discusses risk management measures available to legal professionals, focusing on peer review as an important aspect of meaningful risk management. Part I of this article provides background information regarding the prevalence of legal malpractice claims and the importance of preventative risk management programs. Part II defines law practice risk management and outlines the different processes involved in risk management. These processes are expanded upon in the subsequent parts. Part III articulates the importance of client management procedures in risk management and outlines the various aspects of client management. Part IV details the significance of effective administrative systems in the prevention of malpractice claims. Part V conveys how successful human resources management may prevent malpractice and employment claims. Part VI explains why, in addition to implementing preventative measures, a firm should also establish procedures for handling problems and actual claims. Part VII defines peer review and argues that peer review plays an essential role in risk management programs. The conclusion suggests various resources for guidance in developing a risk management program.