Risk & Compliance: A growth area for ambitious candidates

 Risk and Compliance: A growth area for ambitious candidates

Cyan Partner, Michelle Corneby, specialises in recruiting risk and compliance roles for law firms. She shared what makes this “lawyer’s lawyer” role so unique and why it is a great career path for talented candidates.

Why do law firms have an in-house team?

The origins of these teams are in the Legal Services Act 2007. This legislation set out to improve the regulatory framework for the legal profession and legal services providers and made it a legal requirement to have a Chief Officer of Legal Practice (COLP).

Law firms are complex businesses providing advice to a wide range of clients, handling very sensitive information and processing huge amounts of money all within a highly regulated environment. 

Historically responsibility for adhering to all the rules and regulations and handling contracts or complaints sat with fee-earners, partners or senior associates, but over time most firms have taken the internal work away from the fee-earners to ensure their time is spent doing what they do best (fee-earning) and an internal team has been established to handle the legal, risk and compliance issues facing a law firm. 

In the last 5+ years there has been huge growth in the in-house legal teams of law firms, presenting some very interesting and challenging opportunities. Teams range from sole counsel or very small teams, up to teams of over 100 employees in the largest firms.  The structure can range from paralegals and analysts up to a General Counsel, thus mirroring the teams to be found in wider commerce and industry.   It is a world that many in-house lawyers still do not know exists and are often surprised when they respond to a job advert to discover the business is a law firm.

What is the scope of the risk and compliance role?

There is no shortage of variety and complexity when it comes to supporting a law firm from within.  As with many businesses these days, a firm must operate within a structured regulatory framework that is personal to the sector, however, it also has to incorporate global regulation as well.  Here is a list, not exhaustive, of some of the areas that we encounter when recruiting the in-house law firm roles:

• SRA Regulation and other professional accreditations/frameworks
• Professional Negligence and Professional Indemnity covering investigations and claims, insurance issues and renewals.
• Financial crime including sanctions, anti-money laundering, tax evasion and sources of wealth. 
• New business acceptance such as client due diligence and know your client processes.
• Conflicts, often a complicated and very commercial problem in large firms.
• Data protection, cyber security and, more frequently, AI
• ESG
• Commercial and procurement support
• Corporate matters including partnership and Companies House filings, new office openings
• Litigation and dispute resolution
• Risk Assessment and audits

Why is it an attractive area for candidates?

Some candidates may be put off by the idea of working in-house in a law firm, but I would argue that it is no different from being an in-house lawyer or risk advisor in any other company.  Rather than producing widgets and gadgets a law firm’s product is advice and time, but in every other way the object is the same – to return a profit within the confines of the law and regulation.

As I’ve already highlighted, there are a wide range of issues and areas to choose to get involved in and I really believe there is something for everyone whether you are a litigator and enjoy the contentious issues, a transactional lawyer or some who loves problem solving and advisory work. 

It is not an area for the faint-hearted, because you will be helping the business to navigate a complex geopolitical world, and it is a constantly evolving sector.  You will be working closely with the partners and other stakeholders as well as other functions such as HR, IT and finance.  The relationship between all of these disciplines really crystalises when you are advising a law firm from within.

Depending on their preferences, and the size of the firm, individuals can either specialize in one area and really get beneath the skin of it or they can choose to remain a generalist and gather a wide range of knowledge. Furthermore, due to the shortage of candidates in this space it is also a career path that is currently offering a chance to grow and develop quickly.  There are less “glass ceilings” at present and ambitious candidates are able to seize new roles to learn and develop.  We are seeing an increasing number of General Counsel roles in law firms, which we focus on in other blogs.

One other attractive prospect for a lawyer is this career path will allow you to continue working in a law firm, without the need to fulfil billable time and targets. In a society where mental health is a key concern moving away from targets can be hugely liberating. For many that is a “win-win”.

What personality attributes are important for this area?

As with any in-house role you must be personable and confident to work with a range of people across the organization.  You will be interacting with senior stakeholders, partners and the c-suite and non-lawyers and it is important you are clear, concise and diplomatic in your delivery.  Communication skills lie at the heart of all in-house roles.

A hunger for learning and development is also necessary because these are not areas of law that stand still for long.  Complex areas, such as financial crime require a forensic and problem-solving mindset.

Finally, a positive attitude and solid work ethic will always be needed. No two roles are identical but the qualities that our clients are seeking remain consistent.

What experience is relevant if you want to move into an internal law firm role?

Obviously, it depends on the area you wish to focus on but lawyers from specialist areas such as data protection, white collar crime and professional negligence find they can make the move over.  Wider regulatory experience, including corporate governance, general litigation and commercial can also be very attractive.

Some lawyers are moving internally from fee-earning and law firms like to retain the talent within. However, for some lawyers, this is not an option, and they are moving into new firms and new roles. At Cyan Partners, we are happy to discuss with you whether your experience is transferable into risk & compliance and guide you through the steps you need to take to get there.

Talk to Michelle about the opportunities in this area, connect via LinkedIn