Colp & Cofa

Originally published on 9 June 2013. Updated on 8 October 2026.

Law firm matter data can help managers understand the risks within their practice, identify weaknesses and decide where additional attention is needed. Its value extends beyond recording which files are open and how much work has been billed.

When this article first appeared in 2013, it argued that law firms needed to look beyond collecting documents and start making better use of information about their matters. That remains an important management challenge.

A firm may have an extensive precedent library and well-written policies, yet struggle to answer a straightforward question: which of our current matters need closer scrutiny, and why?

What does law firm matter data tell you?

Matter data includes information about the client, the work being undertaken, the risks identified, the checks completed and the decisions made. Depending on the practice, it may also include supervision records, complaints, missed deadlines and corrective actions.

Viewed across a department or the whole firm, that information can help managers ask better questions:

• Where are higher-risk matters concentrated?
• Which assessments or reviews remain outstanding?
• Are similar matters receiving consistent treatment?
• Do recurring issues suggest a training or supervision need?
• Are agreed corrective actions being completed?

The answers can help management direct its attention before an individual weakness becomes a recurring problem.

Why matter data matters for SRA compliance

The SRA Code of Conduct for Firms requires effective governance and controls, records demonstrating compliance, and the identification, monitoring and management of material business risks.

Well-maintained matter information can help a firm demonstrate how those arrangements operate. For example, a record of a concern, its escalation and the resulting action provides more useful evidence than a policy stating that concerns should be escalated.

There is no automatic regulatory reward for adopting a particular system or producing a dashboard. The practical benefit lies in understanding your work and being able to explain how risks are managed.

Our related article on evidencing law firm compliance examines the connection between written procedures and what happens on individual files.

AML: use client and matter information to inform decisions

For work within the scope of the Money Laundering Regulations, client and matter risk assessments are an essential part of the firm’s AML arrangements.

The SRA’s AML guidance for law firms explains that written assessments should identify the risks posed by the client and matter and help determine the appropriate due diligence and additional measures.

The assessment therefore needs to influence how the matter is handled. A risk rating becomes useful when the file explains the relevant factors and the response to them.

For example, a change in the proposed funding arrangements may call for further enquiries and a review of the assessment. Recording the change, the enquiries and the resulting decision gives management a clearer picture of the matter.

How CDDMonitor supports client and matter risk assessments

CDDMonitor provides AML solutions for law firms, including client and matter risk assessments, initial and ongoing monitoring, and management oversight.

Its relevance to this article is the connection between information collected on individual matters and the firm’s oversight of its AML processes.

When considering a digital assessment system, ask how it will support the people responsible for completing assessments, reviewing concerns and following up outstanding actions. The information must be accurate, and the assessment must reflect the circumstances of the matter.

Look beyond completion percentages

A report showing that every assessment has been completed may appear reassuring. It still leaves important questions unanswered.

Were the assessments completed at the appropriate stage? Do the explanations support the ratings? Were changes considered? Did the firm act on the concerns identified?

Useful management information combines an overview with the ability to examine the underlying records. A pattern of identical answers across very different matters, for example, is worth investigating.

Consistent definitions also matter. If departments use different criteria for the same risk label, their figures may be difficult to compare meaningfully.

Turn recurring findings into management action

Start with a small number of questions that matter to your practice. Review the information, examine a sample of the underlying files and agree what action is needed.

Record who is responsible and when the action will be reviewed. If a recurring issue reveals a wider weakness, consider whether the firm’s procedures, training or supervision arrangements need to change.

This is where matter information connects with a living and breathing risk register. Experience from individual files should inform the firm’s understanding of its wider risks.

Our earlier discussion of integrated risk management and SRA compliance develops the same principle: risk management works best when it forms part of everyday practice.

The value lies in what management does next

Gathering information takes time, so each report should have a clear purpose. Who will review it? What decision will it support? What happens if it identifies a concern?

For a busy firm, a useful starting point may be reviewing overdue assessments, unresolved concerns and repeated file-review findings. Expand the reporting as the firm’s needs become clearer.

Law firm matter data earns its value when it helps people make informed decisions, address weaknesses and demonstrate the action taken.