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Below are risk management practices to help Make clear in your practices
enhance your firm’s culture of quality control.
and procedures that retaliation
Be clear about what is expected
Creating and consistently enforcing practices and for good-faith reporting of
procedures keeps everyone focused on what is
practices and procedures set the tone by identifying concerns, issues, or suspected
expected. Employee handbooks as well as written
the expected ethical and technical obligations of
all employees, officers, shareholders, and partners. violations will not be tolerated.
Service-specific quality control protocols should
be included in the firm’s written policies and
procedures. report is frowned upon, and state the potential
Protocols and procedures should clearly consequences for such behaviors. Aim to reinforce
articulate what is expected and provide instruction the idea that if someone at the firm has a problem,
for reporting any concerns, issues, or suspected vio- the firm is there to help resolve the problem and
lations. Instructions should be detailed and explicit. insulate both the firm and its employee from
Provide examples of situations where reporting is further liability.
required. Each person at the firm should know how
to report issues or concerns, including to whom Follow through
they should report. If staff report a concern, issue, or suspected
Make clear in your practices and procedures that violation, your firm should undertake an internal
retaliation for good-faith reporting of concerns, investigation, with or without the assistance of
issues, or suspected violations will not be tolerated. outside counsel. Investigating the conduct of
Be equally explicit that failing to report or conceal- members of your firm can be uncomfortable. Doing
ing concerns, issues, or suspected violations will the right thing is not always easy. It is, however,
likewise not be tolerated. necessary to proactively manage risk and maintain
accountability.
Create a firmwide culture of quality control If the investigation confirms a violation, the
At least annually, share and review quality control firm should uniformly carry out any reprimand or
practices and procedures with all employees, other deterrent measures in accordance with those
officers, and shareholders/partners. Highlight the delineated in the practices and procedures as well
importance of continued vigilance in following all as HR guidelines. The firm should also explore and
procedures by sharing potential liability concerns implement remedial measures to prevent similar
for failures or violations. Give examples of issues conduct from occurring in the future.
that should be addressed with management, human Remember, failure to address misconduct,
resources, or other appropriate personnel. Explain mistakes, or other violations may result in increased
with whom various scenarios should be addressed penalties or large loss claims. Regulatory investiga-
and how they should be documented. tions, claims, and lawsuits can take substantial time
Consider discussing appropriate examples (while away from your practice and damage your firm’s
maintaining confidentiality, when necessary) of reputation. Creating, implementing, and enforcing
how issues at the firm were raised and addressed internal procedures relating to all aspects of your
during the past year to create an environment firm’s practice is key to avoiding a culture of com-
where your people understand they can and should placency and advancing one of vigilance relating to
voice concerns. Use news of enforcement actions quality control.
and large settlements or verdicts from lawsuits
that are published to highlight the importance of Nicole L. Graham, Esq., is a risk consultant at Aon.
your message. For more information about this article, contact
When discussing quality control procedures with nicole.graham@aon.com. n
employees, make the communication interactive
to start a dialogue with staff. Keep an open-door This article is provided for general informational purposes only and is not
policy to address any questions employees may have intended to provide individualized business, insurance, or legal advice. You
should discuss your individual circumstances thoroughly with your legal and
about the procedures or their responsibilities.
other advisors before taking any action with regard to the subject matter of
Express that ignoring concerns or failing to this article.
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