Have you communicated the principles relating to undertakings to all professional staff in your legal practice?

From the perspective of good risk management all legal practices should maintain a register of professional undertakings.
Controlling undertakings is usually achieved by establishing the relevant policy and procedure.

These are questions to consider before drafting your undertakings policy and procedure:

• Do you maintain a central register of undertakings?
• Do you record all outstanding undertakings on the register? This will define the scope of your procedure.
• Are all your undertakings signed by the principal/partner in your practice? Undertakings must be approved before being given.
• Do you have defined responsibilities and authorities within your practice which include the names of personnel authorised to sign undertakings? This is a requirement under clause 5.5.1 of the LAW 9000 standard.
• If you have a register how often and by whom is the register reviewed? You need a review process in place to ensure compliance.

Here is an example of an undertakings policy and procedure.

Undertakings Policy for Law Firms from Val Antoff

Maintaining an up to date and a good format risk register will help you:

• evaluate your practice's risk exposure 
• provide evidence to your insurers about your practice's risk exposure
• track and monitor the status of all undertakings
• prioritise the high risk undertakings 
• with the matter supervision process.

Computerised client management system usually provide an undertakings register. For a paper based register consider including the following column headings:

• file reference
• name of client
• name of fee earner
• date of prior approval by principal/managing partner
• value of financial liability (if financial undertaking)
• date of undertaking
• summary of undertaking
• date for compliance
• to whom the undertaking was given
• review date
• date of final review and discharge by principal/partner.

The implications of providing undertakings must be communicated to all professional staff. The policy and procedure should be included in the practice's induction training program.

In the next post I will discuss the engagement policy that a legal practice should develop and maintain under the LAW 9000 standard.

For cost effective financial agreements - prenups and postnups - visit www.crystallawyers.com.au.