Posted by Karen Edwards, head of professional development at Legal Futures Associate ILFM
Edwards: Commitment to genuine change is needed
Compliance officers for finance and administration (COFAs) in law firms can often find themselves walking a solitary path. The weight of regulatory compliance, financial oversight, and risk management can feel like a burden carried alone, with the entire firm’s integrity resting squarely on their shoulders.
But what if we could transform this isolated responsibility into a collaborative culture of shared accountability?
The isolation trap
Many COFAs know the feeling all too well: they are often the sole guardian of financial compliance, scanning the horizon for potential risks while the rest of the firm continues its day-to-day operations. It’s a precarious position that can lead to burnout, stress and a sense of disconnect from the broader team.
The traditional approach to risk management often positions the COFA as the sole sentinel, expected to anticipate and mitigate every potential financial compliance issue.
This model is not only unsustainable but fundamentally flawed. Risk is not a one-person responsibility – it’s a collective commitment that should be woven into the fabric of the entire firm.
Building a culture of shared accountability
So how can COFAs encourage a collaborative approach? Here are some practical tips:
1. Education is key
The journey to shared responsibility begins with comprehensive education. This isn’t about one-off training sessions but creating a continuous learning environment where compliance is embraced and understood, not feared.
- Develop engaging, scenario-based training that demonstrates real-world compliance implications.
- Create bite-sized learning modules that can be easily digested.
- Use real examples from your firm (these can be anonymised) to make training relatable.
- Implement regular ‘risk awareness’ briefings that are interactive and discussion-led.
2. Make risk visible and approachable
Demystify compliance by making risk management transparent and understandable:
- Create clear, simple dashboards that show current risk levels.
- Use traffic-light systems to indicate compliance status.
- Develop easy-to-understand risk-reporting templates.
- Celebrate proactive risk identification, not just risk mitigation.
3. Establish clear communication channels
Create multiple, accessible ways for staff to report potential risks and breaches:
- Implement an anonymous reporting system.
- Hold regular open forums where staff can discuss compliance concerns.
- Develop a clear escalation process that doesn’t feel punitive.
- Ensure leadership visibly supports and participates in risk discussions,
Takeaway tips for COFAs
1. Risk champions programme
A risk champions programme can help provide designated accountability across each area of your firm. It does not have to be an onerous extra task for anyone and also provides COFAs with a team ethos, particularly in larger firms.
COFAs can:
- Identify and train representatives from each department.
- Give them specific responsibilities for risk monitoring in their areas.
- Provide additional training and potential career development opportunities.
2. Quarterly risk health checks
An ongoing approach to assessing risk is often most effective. By building risk assessments into regular reviews or calendars, it becomes a part of the firm’s routines and can be planned for accordingly. COFAs can also:
- Conduct department-wide risk-assessment workshops.
- Encourage teams to identify potential risks proactively.
- Create a collaborative risk register that’s updated regularly.
3. Transparent reporting
Regular reporting to leadership teams is crucial. Risk and breach reports should also be shared with the whole firm, to help encourage an open, collaborative approach.
- Develop monthly or quarterly risk and breach reports that are shared with the entire firm.
- Use clear, non-technical language.
- Highlight successful risk mitigation as well as potential issues.
4. Incentivise proactive risk management
It’s also worth considering positive reinforcements of risk management behaviour, perhaps through bonus schemes or employee recognition:
- Include risk awareness in performance reviews.
- Consider small rewards or recognition for staff who proactively identify and help mitigate risks.
- Demonstrate that risk management is a positive contribution, not a punitive measure.
5. Leadership engagement
Active buy-in from firm leadership is very important. Without this, COFAs will struggle to make meaningful changes. They can:
- Ensure senior management visibly supports and participates in risk management.
- Have leaders regularly discuss the importance of compliance.
- Include risk discussions in all strategic planning sessions.
The cultural shift
Transforming from a lonely COFA to a collaborative risk management leader isn’t an overnight process. It requires patience, consistency and a genuine commitment to cultural change.
Remember, your goal is to create an environment where every team member sees themselves as a guardian of the firm’s integrity. When risk management becomes a shared mission rather than a solitary burden, everyone wins.
By making compliance a collective responsibility, you’re not just managing risk – you will be building a more resilient, aware and ultimately more successful organisation.
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