Trying times: Clare Hughes-Williams & Patrick Hill advise on how best to mitigate exposures in an economic downturn
- Certain risks for law firms become more prevalent during times of economic crisis, including the frequency of claims and the possibility of cyber-attacks.
- It is vital to maintain strong financial governance and security systems during such times.
The news that the UK may be entering a recession is as unwelcome for the general public as it is for business leaders.
Professional services firms, and law firms in particular, are no exception. Recessionary conditions traditionally have an adverse impact on real estate and corporate lawyers with fewer deals being done, while their insolvency colleagues experience an uptick in activity levels as businesses start to suffer.
But are there any exposures that are specific to a poor economic climate, and can we mitigate those exposures?
Financial governance
The Solicitors Regulation Authority (SRA) has recently made it clear that it will be keeping a watchful eye over
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