What We're Doing to Manage Risks for Alberta Lawyers

By Don Thompson, QC, Executive Director, Law Society of Alberta

The Law Society of Alberta takes very seriously its goal of becoming a model regulator. To that end, significant changes are taking place or planned to increase the efficiency and effectiveness of regulatory practices.

Key Initiatives Underway

The LSA's efforts to manage risks for Alberta lawyers include:

Establishing an implementation committee for the Security of Trust Funds Task Force. The task force has made several recommendations to improve risk management of trust funds.
Forming an Integrated Risk Assessment Program (IRAP) which facilitates information flow and discussion between LSA departments and the Alberta Lawyers Insurance Association (ALIA) to identify potential high-risk lawyers and/or conduct patterns. Various risk flags are used to identify risky conduct and indicators are continually enhanced as more is learned.

Increasing the use of formal practice reviews applied in early intervention circumstances. In 2007, the decision was made to end informal practice reviews and focus on integrated risk assessment including formal practice assessments when appropriate.
Approving major changes to the new know-your-client rules to reduce fraud and money laundering by clients. Information sessions were held by LSA's Practice Advisors introducing the new rules.
Increasing the focus on risk management in the LSA's Rule 130 audit work. Although locations for many of these audits are selected at random, other circumstances may also trigger an audit, and
Heightening awareness of risk management within the LSA corporate culture, particularly in the conduct department.

Opportunities and Future Directions The LSA's strategic objective in the long term is to continue to strengthen its unified approach to risk awareness and response, as well as its integrated risk management program.

Practice Review – Opened Practice Review files
Year	Self	Informal	Formal	Reinstatement
2001	2	18	6	6
2002	2	18	15	1
2003	2	90	6	2
2004	5	88	9	3
2005	3	68	13	3
2006	7	22	7	3
2007	2	5	8	4
2008	0	3	10	3

Number of Years between Spot Audits at Number of Firm Locations
Years	Locations
0	220
1	298
2	176
3	84
4	73
5	97
6	78
7	57
8	57
9	56
10	18
>10	436
Total	1650

Integrated Risk Assessment Panel Strives for Early Detection

By Mike Martin, Risk Assessment Officer, Law Society of Alberta

In managing the risk to the public of lawyers who are experiencing difficulties with their practices, the Law Society has formed a cross-departmental team to identify, support and manage those practitioners at risk.

As part of its risk assessment program, the LSA created the Integrated Risk Assessment Panel (IRAP) in March 2008. Comprised of key people from different LSA departments and chaired by the Risk Assessment Officer, the group is responsible for the early detection and management of lawyers experiencing difficulties in their practice of law.

The IRAP has a direct reporting relationship to the LSA Director of Lawyer Conduct and is guided by a LSA policy agreed to at the February 2008 Bencher meeting. The group has several remedial tools available. The action prescribed by the group strives to mitigate the perceived risk to the public of the practitioner's actions.

During these recessionary times, the IRAP has not noticed an increase in the number of practitioners at risk but has noticed a change in risk indicators.

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