Benefits of a Standardized Process for Conflict Checks

I have been reading a book by Sandra J. Roberts called "Creating Conflicts of Interest Procedures for Protecting You and Your Firm from Malpractice", and have found it aligned with what I already knew; while providing additional detail and ideas for our Conflicts Analysis Standardization Effort (C.A.S.E.).

Have a look at a part of the Foreward:

"The objective for an effective conflicts of interest department is to create one that processes client names and associated party information accurately, efficiently and rapidly with minimal time taken away from the attorney's legal representations and valuable billable hours. Developing these effective conflicts of interest procedures has many benefits. Not only can effective procedures enable attorneys to reduce their risk, but it may help lower their professional liability insurance premiums. In order to do that, the process does not need to be cumbersome. It can be completed quickly with the right procedures in place regardless of the size of the firm. These procedures include implementation of the following actions:

• Entering accurate information into a conflicts database.
• Searching party information properly through the conflicts database and other research database resources.
• Reviewing the results to eliminate extraneous information.
• Clearing and approving the applicable results.
• Setting up further procedures to manage potential conflicts of interest issues."

While this is a very simplified 30,000 foot view of conflicts, I think it speaks to the Conflicts Standard that we're looking to develop at RION Corp. under the C.A.S.E.

To that end, we should have in mind the possible benefits of setting up and implementing the standard:

• Reduced Firm & Attorney Risk
• Reduced Insurance Premiums
• Increased Confidence in Accepting Business
• Creation of Competency Standards
• Increased Analyst Confidence = Additional Speed
• Best Practice Always Used
• Heightened Efficiency in Conflicts and Business Intake
• Increased Potential for Profitability

How does your malpractice policy affect your CoI program or vice versa?  Please share in the comments section below.

Cori Blackburn
RION Corp.
224-277-3855
cori.blackburn@rioncorp.com

Conflicts Intake vs Conflicts Research vs Conflicts Resolution

There is a clear distinction between intake, research & analysis, and resolution of conflicts.  Determining first if all the information you have is accurate and complete is critical in the conflicts clearance process.  Once you can confirm that all information is clear and complete, you can begin your research and analysis of the parties, practice area, and matter description.  What are some of the questions you should ask yourself when performing an intake of your conflict check request?

• Do I have the complete legal name of this entity or individual?
• Is this party a current / active client?
• Do we have an engagement letter for this client / attorney?
• Are we already adverse to this counterparty?
• If a known conflict exists, do we have consent?
• If this matter is a transaction, who is the opposing party (purchaser, seller, etc.)?
• If this is a dispute, is this a contentious or litigation matter? Do I have the correct description of this matter?
• Is this third party potentially adverse?
• How long will it take to search this party’s corporate family, officers, directors, or individual for sanctions or financial compliance?

Once these questions have been addressed, then you can determine a course of action. When you begin to perform research on an entity or individual, you will come across some more questions.  Depending on your policy and procedures, you may or may not need to run a full search of the entire corporate family tree, or a limited search, or no search at all. You may or may not need to run a credit check, or search sanctions or law enforcement databases.  You may simply be able to clear the matter yourself in minutes, or you may need to run a thorough examination into all of the parties and, if conflicts exist, obtain all the consent you can, and / or move it forward for review by an attorney or committee.

Conflicts resolution can be tricky and requires in some firms an attorney to resolve potential conflicts, and implement ethical walls.  How does your firm approach this process?  We invite you to share in the comments section below.

Ryan Vago
Founder & President
RION Corp.