You have come into work and
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You find that your accounts clerk of 10 years has left his set of office keys, ID tag and letter of resignation on your table. Application for Practising Certificate is due in a month and your auditors are coming tomorrow.
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Your legal assistant has just informed you that some of your important client files have been affected by the recent manhole sewerage overflow at the Jalan Duta Court complex.
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There has been a power outage in your office building and they do not expect power to be restored until tomorrow morning.
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Someone left the tap running in the office pantry over the weekend and now half your office is swimming in two feet of shallow water.
Is your firm equipped to deal with any of the above scenarios?
The reality of the matter is, business interruptions:
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That have the potential to interrupt or destroy a law firm can come in many forms, and usually, they are in forms not unlike the above scenarios!
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For any law firm is a question of “when”, not “if”, and they can hit at any time, in all shapes and sizes.[1] Remember, “accidents/disasters” do not make appointments![2]
Business interruptions can affect a firm’s principal(s), certain staff/departments, or even the firm as a whole. There are six (6) broad categories that fit this description of business interruptions:
[3]
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Natural Disasters: Flood, fire, earthquakes.
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Technology Disruption: Computer failure (virus, hardware or data loss).
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Infrastructure Failure: Building defects (roof collapse), water damage from sprinkler systems or floods, telephone or power outages.
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Health Scares: Epidemics, pandemics (SARs, Bird Flu, HFM disease).
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Criminal Elements: Violent crimes (robbery, workplace assault), cyber crimes (hacking), sabotage by disgruntled employees/unhappy clients. Loss or theft of client files, documents, identity fraud etc.
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Human Resource Shortcomings: Resignation or extended illness of key staff or lawyers, sudden death or disability, succession crisis.
Simple events like a burst pipe, to loss of your firm’s master diary, to a sole proprietor having a stroke/ heart attack could prove catastrophic if contingency plans are not in place. Hence, foresight, along with some planning and preparation beforehand is critical in minimising the impact of any accident or disaster, large or small.
[4] How prepared is your law firm?
Managing Unscheduled Business Interruptions
The fundamental objective of business interruption and contingency planning is business continuity - keeping operations running, being able to service clients, maintaining client confidence, maintaining regular cash flow, and similar strategic activities for survival.
[5]
“Business interruptions for any law firm is a question of “when”, not “if”, and they can hit at any time, in all shapes and sizes.”
[2] ‘When Lightning Strikes... Are You Prepared?’, LawPro, July 2002, Vol 1, Issue 2, page 2.
[2]