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DS News May 2017

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51 ยป VISIT US ONLINE @ DSNEWS.COM departments: operations, finance, information technology, and human resources. rough audits, reporting, and proactive change, a strong compliance team has the potential to save the Firm significant amounts of money. In addition to diligent efforts to avoid major risks, the compliance team can save costs by streamlining tasks. Compliance today is the foundation of a law firm positioned for continued success. Compliance in a heavily regulated industry such as ours is no longer simply one respon- sibility among many of a managing attorney. Instead, compliance has evolved to require complete dedication of an experienced team. e cost of an experienced team is well worth the expenditure saved and risk avoided. Does your firm employ self-audits? What do they look like? Our Firm does employ self-audits. It is not only a client requirement but a best-practice. I am very proud of the compliance team that conducts these audits and presents results for discussion. We have two main types of self- audits: e first is our quality control audit, and the second is a mock client audit. e quality control group audits a certain percentage of each client's files. QC audits a file at each completed milestone and at file closure. e auditors validate information as presented between the Firm's case manage- ment software and the client's system; verify military and bankruptcy searches conducted properly and at all appropriate times; check for proper redaction on publicly-filed docu- ments; evaluate document quality; and monitor timeline compliance. Additional checkpoints are added if a file is contested or goes through a mediation process. Results are compiled into reports and discussed on a weekly basis with the compliance team. Any high-level concerns or process changes are discussed on a weekly compliance call, which includes each state managing attorney and managing paralegal. e goal is to have only positive results to share during these conference calls. Self-audits in preparation for client or other third-party audits are the second type of internal audit our Firm conducts on a regular basis. ese types of audits are the equivalent of mock court. e compliance team conducts random site inspections to confirm physical security. ere is a checklist provided, so the team members know what to consider. ey look for clean desks, secured file cabinets, and locked computer screens if employees are away from their desks. Physical security require- ments are included at new hire training, and we use the rhyme "get on your feet; press control-alt-delete." Compliance has to be fun, right? In addition to preparing us for a physi- cal security audit, the compliance team will conduct a technology audit and an operational audit to make sure all the puzzle pieces fit together properly. Results from the mock court self-audits are reviewed by the compliance team to ensure minimal remediation requirements and future successful audit results. Internally, results may trigger additional training requirements or a review of the Firm's policy. How do you help your firm steer through the challenges that audits present? Preparation is the key to successful audit results. Tips for excellent preparation include continuously updated, commonly requested documents; self-auditing frequently; and run- ning a tight ship. Commonly requested documents, such as our Firm Resume and Firm Escalation Matrix, are reviewed and updated as needed on a monthly basis. By doing this, we don't have to backtrack and update again when the time comes to submit documents to potential or existing clients for review. Self-audits are a key component to adequate preparation. Any anomalies in process or policy should be revealed over the course of a self-audit, which minimizes audit surprises. Running a tight ship is intertwined with the self-audit process. As long as compliance is enforced and treated as a priority across all aspects of the Firm, any issues that arise during an audit should be minimal. An important element to consider during the audit process is that a remediation is not a failure. Rather, it is the opportunity to improve in the future. When handled properly, a reme- "Compliance is not optional. I recognize that costs may be substantial; however, there are not typically any cost-saving measures that can be employed to defray or minimize costs. In addition to technology, there is significant cost involved in creating, developing, and maintaining a talented compliance team. The old adage of 'you get what you pay for' still holds true."

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