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CQS Risk Management Policy – Guidance

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The largest chapter in the new CQS Standards is section five, and it is appropriately so since it addresses risk management. This aspect significantly influences all other parts of the Standards by mandating firms to maintain a compliance plan and a risk register as well as a comprehensive Risk Management Policy.

Ensuring effective risk management requires a CQS firm to establish clearly defined roles and responsibilities for handling risks. Additionally, it is crucial to communicate risk-related information to all conveyancing staff when deemed appropriate. Furthermore, a mandatory requirement is to designate a named supervisor with the requisite experience and competence to oversee legal services and those involved in delivering them under CQS.

The drafting of a CQS Risk Management Policy should not be a significant burden for Lexcel accredited firms as those practices must have a risk management policy – including a compliance plan, a risk register, defined risk management roles and responsibilities and arrangements for communicating risk information.

A firm’s CQS Risk Management Policy should include reference to:

  1. Responsibilities for operational risk
  2. Risks related to strategy and regulation
  3. Factors influencing work-related risks
  4. Guide for assessing operational risks


…as well as other formalities and general obligations as required under 5.1 of the CQS Core Practice Management Standards.

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