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The lonely role of a COFA: sharing the burden of risk management

Posted by Karen Edwards, head of professional development at Legal Futures Associate ILFM [1]

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.

2. Make risk visible and approachable

Demystify compliance by making risk management transparent and understandable:

3. Establish clear communication channels

Create multiple, accessible ways for staff to report potential risks and breaches:

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:

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:

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.

4. Incentivise proactive risk management

It’s also worth considering positive reinforcements of risk management behaviour, perhaps through bonus schemes or employee recognition:

5. Leadership engagement

Active buy-in from firm leadership is very important. Without this, COFAs will struggle to make meaningful changes. They can:

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.