By Kerry Greenwood of Legal Futures Associate Miller Insurance
At the recent Legal Compliance Collectives Unconference hosted by Miller, one of the recurring themes among delegates was how law firms are actively working to cultivate a strong and sustainable risk and compliance culture.
This is no surprise. A robust compliance culture is not just a regulatory necessity – it’s a cornerstone of long-term business health. It helps firms navigate the complex regulatory landscape, reduces operational, legal and reputational risks, and can even mitigate exposure to professional indemnity claims.
Ultimately, a positive compliance culture reinforces a firm’s ethical standards, strengthens internal cohesion, and bolsters its external reputation.
What is compliance culture?
At its core, a firm’s risk and compliance culture should set the shared values, behaviours, and norms that guide how teams approach legal, ethical, and regulatory obligations. Creating a healthy culture requires active involvement from everyone – partners, associates, and support staff alike.
However, embedding compliance into the day-to-day operations of a law firm isn’t always straightforward. Success requires clear communication, strong leadership, and a range of practical strategies that engage staff at all levels.
Strategies to create a healthy compliance culture
1. Clear communication
- Articulate the firm’s risk management and compliance policies in a way that resonates with employees. Ensure everyone understands why these policies exist, how they protect the business, and what their individual role is in maintaining them.
- Consider integrating compliance education into induction programmes to build awareness from day one.
- Establish informal engagement forums such as “Compliance Cafés” or drop-in sessions to encourage regular, open discussions in a non-intimidating setting.
2. Provide adequate training
- Formal training remains essential to help employees manage compliance issues confidently and correctly. These sessions should cover both general legal principles and specific issues relevant to the firm’s practice areas and their processes.
- Use practical examples and real-world case studies to make training relatable and applicable.
- Consider a mandatory rotation programme for trainee solicitors to sit in the compliance team. This not only develops their risk awareness early but also creates future champions of compliance within the business.
3. Lead by example
- Senior leaders must embody the compliance values they expect others to uphold, lead by example and encouraging their teams to do the same.
- Highlight the cost of non-compliance – such as increased professional indemnity premiums, excess payments, and the resource drain of managing claims – as part of the business case for proactive risk management.
4. Create a responsive and approachable compliance team
- It’s not enough for compliance professionals to be knowledgeable; they must also be accessible. Encourage frequent interaction across the firm.
- A responsive, visible compliance team reassures employees that their concerns will be heard and addressed promptly.
5. Share and celebrate successes
- Compliance can sometimes be perceived as a barrier to business. By showcasing how the compliance function enables good outcomes, you shift this narrative.
- Publicise key wins, such as helping teams navigate complex regulatory changes or avoiding risks through proactive advice.
6. Foster openness and transparency
- Create an environment where staff feel safe to raise questions or flag concerns about potential risks.
- Open dialogue not only surfaces issues early but also builds trust in the compliance process.
7. Conduct regular audits
- Scheduled audits are essential to monitor policy adherence and uncover gaps before they become problems.
- Ensure that any issues identified are addressed swiftly, and that lessons learned are shared across the firm.
8. Recognise and reward compliance behaviours
- Positive reinforcement can significantly enhance engagement with compliance policies.
- Incorporate compliance contributions into performance reviews and appraisal processes to formalise their value.
Conclusion
Establishing and maintaining a strong compliance culture is not a one-off project – it’s a continuous journey. It demands sustained commitment at all levels of the organisation, from the leadership team to individual employees. But the benefits are clear: law firms that prioritise risk and compliance not only reduce exposure to liability, but also foster a healthier, more resilient, and ethically grounded workplace and reputation.
