Malaysian law firms are face several risks in the course of legal practice. These risks arise from the business environment under which the firms operate; a factor which seems to be beyond the control of most firms. Changes in Malaysian economy often yield corresponding changes in governance, social, economic and political stability, changes in information technology and general advancements or deteriorations in the way business is conducted in every sector. This dynamic environment becomes difficult to cope with, especially when law firms are making every effort to remain profitable in a competitive platform.
Malaysian economy keeps changing from time to time. Changes in the social environment come with various opportunities as well as risks. These changes also attract certain kind of crimes which law firms must be prepared to address. Getting involved in such cases puts the firms and individual lawyers at risk. Economic and political changes also bring many cases wrought with risks. An improving economy means many businesses thriving. When many businesses perform better, there are fewer court cases to handle. On the other hand, there could be new enterprises, mergers and acquisitions, partners and other contracts and agreements which require the services of a law firm. There are numerous risks associated with these opportunities.
Information technology has created a new work environment in the legal industry. Law firms have had to switch from hard copies of information to electronic data. While hard copies may not cease completely, electronic data processing has made it easy to carry out administrative tasks such as data entry, document processing, reporting and analysis. Computer forensics has become a common procedure in criminal investigations and detections. Lawyers therefore have to understand the current techniques of handling various crimes especially in an electronic environment where evidence can easy be manipulated and completely lost. Law firms have to cope with risks associated with such kinds of manipulations.
Small and medium sized law firms are increasingly finding it difficult to cope with client demands. There is an increasing concern about the quality of services offered by lawyers and whether law firms exercise caution when handling client`s confidential information. These demands pose a new risk especially to law firms that are incapable of meeting client expectations. Since lawyers are bound by their duty and oath, most of them tend to ignore external calls for change and compliance. Risk management seems to be reserved for individual firms and implemented based on individual tolerance and preferences. It is these individual preferences that have made Malaysian law firms vulnerable to unbearable accidents which lawyers and law firms have cannot handle effectively.
New methods of accessing and handling information have exposed many law firms to data theft and losses among other accidents which have been very costly to clients, individual lawyers, law firm and the entire legal profession. The use of electronic information in legal practice contributes to a high level of confidentiality risk. When legal information was strictly in hard copy, lawyers needed very little guidance on how to handle it. Electronic information demands that legal personnel take more precautions to prevent unauthorized access and safeguard confidentiality.
The Malaysian Bar Council periodically holds workshops within the country to sensitize law firms and solo practitioners on risk management practices focusing on areas such communication, office administration, time management, file handling and proper management of law firm accounts. The bar recognizes these functions as the most vulnerable as far as organizational risk exposure is concerned. Law firms are encouraged to release their secretaries, administrators and other employees to attend such conferences in order to become well conversed with proper risk management practices.
Malaysian economy keeps changing from time to time. Changes in the social environment come with various opportunities as well as risks. These changes also attract certain kind of crimes which law firms must be prepared to address. Getting involved in such cases puts the firms and individual lawyers at risk. Economic and political changes also bring many cases wrought with risks. An improving economy means many businesses thriving. When many businesses perform better, there are fewer court cases to handle. On the other hand, there could be new enterprises, mergers and acquisitions, partners and other contracts and agreements which require the services of a law firm. There are numerous risks associated with these opportunities.
Information technology has created a new work environment in the legal industry. Law firms have had to switch from hard copies of information to electronic data. While hard copies may not cease completely, electronic data processing has made it easy to carry out administrative tasks such as data entry, document processing, reporting and analysis. Computer forensics has become a common procedure in criminal investigations and detections. Lawyers therefore have to understand the current techniques of handling various crimes especially in an electronic environment where evidence can easy be manipulated and completely lost. Law firms have to cope with risks associated with such kinds of manipulations.
Small and medium sized law firms are increasingly finding it difficult to cope with client demands. There is an increasing concern about the quality of services offered by lawyers and whether law firms exercise caution when handling client`s confidential information. These demands pose a new risk especially to law firms that are incapable of meeting client expectations. Since lawyers are bound by their duty and oath, most of them tend to ignore external calls for change and compliance. Risk management seems to be reserved for individual firms and implemented based on individual tolerance and preferences. It is these individual preferences that have made Malaysian law firms vulnerable to unbearable accidents which lawyers and law firms have cannot handle effectively.
New methods of accessing and handling information have exposed many law firms to data theft and losses among other accidents which have been very costly to clients, individual lawyers, law firm and the entire legal profession. The use of electronic information in legal practice contributes to a high level of confidentiality risk. When legal information was strictly in hard copy, lawyers needed very little guidance on how to handle it. Electronic information demands that legal personnel take more precautions to prevent unauthorized access and safeguard confidentiality.
The Malaysian Bar Council periodically holds workshops within the country to sensitize law firms and solo practitioners on risk management practices focusing on areas such communication, office administration, time management, file handling and proper management of law firm accounts. The bar recognizes these functions as the most vulnerable as far as organizational risk exposure is concerned. Law firms are encouraged to release their secretaries, administrators and other employees to attend such conferences in order to become well conversed with proper risk management practices.
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