How Legal BPO Services Improve Legal Compliance

Navigating the maze of legal regulations can feel like a never-ending task for law firms. It’s no small feat for a company (whether big or small) to keep up with the latest rules and verify if every procedure meets legal standards. That’s why more and more businesses are leveraging Legal BPO Services. They offer a lifeline for firms struggling to stay compliant while juggling their core legal work.

Despite that, the American Bar Association reported only 35% of law firms had a full security assessment performed by a third party. Security is a key factor that contributes to whether your company maintains its compliance. Legal compliance isn’t just about avoiding fines or legal trouble — it’s about keeping everything running smoothly and staying ahead of the game. With laws and regulations constantly being updated and added, having a partner who specializes in compliance can be a huge help.

Let’s discuss how outsourcing can help your law firm maintain and strengthen this important aspect of running a business.

What is Legal Compliance?

Legal compliance means following the rules and regulations that apply to your business or practice. For law firms, this isn’t just about adhering to the rules of legal practice — it also involves staying up-to-date with the laws affecting clients and other business areas.

Why Legal Compliance Matters

Law firms need to navigate a maze of regulations, from local to national levels, depending on their specialization. Staying compliant is essential, but it can be pretty tricky. Lawyers deal with sensitive financial transactions and handle heaps of private client data, making ethical behavior and strict adherence to laws a must.

Moreover, the legal profession has rigorous standards, and slipping up can lead to serious consequences, like legal trouble and a damaged reputation. If you don’t stay on top of these requirements, you risk not only legal issues but also losing client trust and facing bad press.

Common Compliance Challenges Faced by Law Firms

Law firms face a few recurring obstacles when it comes to compliance. Let’s look at the most usual ones:

Keeping Up with Changing Regulations

Laws and regulations are always in flux. Take GDPR, for instance — it brought a host of new data protection rules that firms had to adapt to quickly. Keeping track of these changes and implementing them can feel like an uphill battle. It’s crucial to stay informed and agile to avoid falling behind.

Internal Policies and Procedures

Having a solid plan for best practices is just the start. To truly guarantee compliance, you need a strong office culture and ethical framework to back up those policies. Your firm’s culture plays a huge role in how well these guidelines are followed.

Senior members need to lead by example, showing commitment to ethical standards both in their actions and publicly. This dedication should trickle down through the firm, with regular training and education keeping everyone up-to-date with evolving regulations.

Managing Documentation

Compliance requires thorough documentation. You have to meticulously track everything from client communications to case files and internal procedures. This can be a huge task, and even small mistakes can lead to significant issues. 

Cybersecurity

With the increasing regulation of data and privacy, law firms must be extra vigilant. Since law firms handle highly sensitive client information, a data breach or cybersecurity failure can have serious consequences. 

Effective cybersecurity demands a long-term investment in IT infrastructure and security staff. In fact, Deloitte revealed that 81% of organizations outsource their cybersecurity. This shows that businesses really do see the significance of protecting digital assets and that they’re open to solutions like outsourcing.

Conducting Internal Audits

Regular internal audits are a must to ascertain everything’s up to code, but they can be quite resource-intensive. They need expert attention and a lot of effort to thoroughly check that all aspects of legal and regulatory observance are being met. Balancing this with day-to-day operations can be challenging.

Training Staff

Ongoing staff training is also essential for staying on top of compliance requirements and changes. This not only takes time but also resources. Investing in regular training helps make sure that everyone is informed and compliant, which ultimately helps prevent costly mistakes.

Limited Resources

Keeping up with evolving regulations can be tough, especially for smaller agencies. While larger firms often have dedicated teams for it, smaller businesses may not have that luxury. This makes continuous education and training even more crucial. If hiring a full team isn’t feasible, you have scalable and affordable solutions like outsourcing.

Adapting to Remote Work

The shift to remote work, accelerated by the COVID-19 pandemic, presents new regulatory and data security challenges. With fewer face-to-face interactions and decentralized systems, enforcing regulatory adherence and data protection can be harder.

Remote work means lawyers are likely using personal devices and networks, which can complicate data security and increase the risk of cyberattacks. Investing in comprehensive training, robust cybersecurity measures, and effective technology solutions is crucial to managing these new risks and maintaining compliance in a remote work environment.

How Legal BPO Services Ensure Compliance

Legal BPO services can take over many compliance-related tasks, freeing up your time to focus on your clients. Here’s how they help:

• Regulatory Updates. Legal process outsourcing (LPO) services track and analyze changes in regulations, keeping you informed about new requirements. They provide updates and detailed reports, so you don’t miss a beat.
• Compliance Audits. Outsourcing audits can simplify the process. You can have a provider conduct thorough reviews, identify gaps, and suggest improvements for your firm.
• Document Management. BPO services can manage the overwhelming task of documentation. An outsourcing partner can help you make sure all records are accurate and accessible.
• Training Programs. Some providers offer training for your staff, helping them stay up-to-date with the latest requirements. This means your team remains informed and ready to adhere to new regulations.

Examples of Compliance Tasks to Outsource

1. Collecting Compliance Data. You can delegate the gathering of data and information from both systems and individuals to ensure all requirements are met.
2. Assisting with Compliance Reporting. Let your firm get support for both internal and external compliance reporting efforts to maintain transparency and meet regulatory standards.
3. Testing and Monitoring. You can hire external help to regularly test and monitor business processes and systems to verify they adhere to legal and regulatory needs.
4. Trend Analysis and Predictive Modeling. Your company can have an outsourced team to analyze trends and perform predictive modeling to anticipate and address potential compliance issues before they arise.

Benefits of Outsourcing Legal Compliance

Outsourcing your compliance tasks can take the stress out of staying on top of regulations and lessen your risk of non-compliance. Here’s why:

Expertise

When you partner with a legal BPO provider, you get access to specialized teams who live and breathe compliance. Their experts know how to spot potential issues that might slip through the cracks in-house. They’re tuned in to the latest regulations and best practices, so you don’t have to be.

Information services company Wolters Kluwer even found out that 93% of legal organizations hand off various activities to legal and compliance providers. This proves the growing need and trust in solutions like offshoring.

Technology

Outsourcing companies often have access to the latest or most fitting technology designed to keep your observance efforts on track. These tools can monitor your processes around the clock, flagging potential risks before they become problems. They make sure your compliance tasks are up-to-date and running smoothly, so you don’t have to worry about lagging behind.

Flexibility

As we’ve mentioned, regulations are constantly evolving, and keeping up can be a full-time job. By outsourcing, you get the benefit of a team that can quickly adapt to new requirements. This flexibility means you don’t have to stretch your internal resources thin or scramble to meet new standards. Your outsourced partner handles the heavy lifting, so you can focus on what you do best.

Integrating Legal BPO Services for Compliance

Integrating legal BPO services into your firm’s operations involves a strategic approach. Here’s how you can start:

1. Identify Compliance Tasks. Start by pinpointing which regulatory tasks you can outsource to a BPO provider.
2. Select a Legal BPO Provider. Choose a trusted company with a solid reputation in compliance management.
3. Develop a Communication Plan. Set up clear communication channels and protocols to get ahead of having seamless collaboration.
4. Monitor and Evaluate. Keep an eye on the BPO provider’s performance and regularly assess the effectiveness of the outsourced tasks.

Bolster Your Legal Compliance with STAFFVIRTUAL

To sum up, legal BPO services can make a world of difference in how your firm handles compliance. STAFFVIRTUAL offers top-notch legal BPO services designed to enhance your observance efforts. We have the means and resources to make sure your law firm stays on top of the challenges presented by this particular area.

Let us tackle the tricky aspects of compliance management while your firm can focus on delivering excellent legal services. Outsourcing some of your compliance needs with us not only reduces risks but can also improve how your company operates. Consider how STAFFVIRTUAL’s solutions can support your compliance efforts and help you manage your regulatory responsibilities. Book a meeting with us today!

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Sources:

Understanding Compliance Challenges for Law Firms | Embroker

Compliance Outsourcing: Weighing the Risks and Opportunities | The Wall Street Journal

2022 Cybersecurity Tech Report | American Bar Association

GDPR Compliance and What It Matters to Your Law Firm | The Association of Legal Administrators

Deloitte Global Outsourcing Survey 2022 | Deloitte

Top outsourcing trends in legal and corporate compliance | Wolters Kluwer