According to the British Standards Institution, 87 percent of businesses believe that risk management protects revenue and enhances value for money;  93 percent agreed that it improves accountability, decision making, transparency and visibility.

Rule 5 of the Solicitors’ Code of Conduct 2007 Business Management in England and Wales, under section 5.01 and subsections (1), (k), (l), (32), Supervision and management responsibilities, says that:

“If you are a principal in a firm, a director of a recognised body which is a company, or a member of a recognised body which is an LLP, you must make arrangements for the effective management of the firm as a whole, and in particular provide for the continuation of the practice of the firm in the event of absences and emergencies, with the minimum interruption to clients’ business; and the management of risk”.

The Law Society’s opening statement in its Lexcel Practice Guide says, “Practices which manage risk effectively will enjoy lower indemnity insurance premiums”.

The Financial Services Act says, in SYSC 3.2.19G, that:

“A firm should have in place appropriate
arrangements, having regard to the nature, scale
and complexity of its business, to ensure that it
can continue to function and meet its regulatory
obligations in the event of an unforeseen interruption.
These arrangements should be regularly updated and
tested to ensure their effectiveness”.

Furthermore, commercial insurers are becoming
aware that having a Business Continuity Plan is likely
to reduce the severity of a business interruption claim
and may even have a positive effect on professional
indemnity, business interruption, and directors’ & officers’ insurance premiums.