Law firms face an abundance of challenges maintaining financial stability and client service in a virus-ridden world—not just coronavirus, but the electronic sort too. There are also many detailed Brexit-related changes affecting even domestic firms. Here are a few areas to address.
Cyber—with a sting in the tail
A cyber incident may cause reputational damage which imperils a law firm’s existence. This is not just an issue for large firms—hackers released personal injury client documents held by a US law firm.
According to the SRA Risk Outlook 2020/2021, in the first half of 2020 law firms reported losses of nearly £2.5m, and that there was a 337% rise in phishing scams in the first two months of the first national lockdown. The SRA published a thematic review in September 2020.
At present, client money—but not the firm’s own—is broadly protected against cyber risks due to the extensive cover afforded under the SRA Minimum Terms and Conditions of Professional Indemnity Insurance (MTC), though no
