Updating the Client and Matter Risk Assessment

The Client and Matter Risk Assessment should remain a live document.

Lawyers should update their assessment whenever they become aware of a material change affecting:

• the client;
• beneficial ownership;
• control arrangements;
• authority to instruct;
• sanctions exposure;
• source of funds;
• source of wealth;
• transaction structure;
• jurisdictions involved; or
• the overall risk profile of the matter.

The Firm is interested not only in risks becoming higher, but also in understanding why risks remain acceptable despite developments during the matter.

Accordingly, lawyers should record significant developments and the rationale for any conclusions reached.

Particular attention should be paid where:

• ownership or control changes;
• funding arrangements change unexpectedly;
• a new third-party payer becomes involved;
• the scope of the matter changes materially;
• a new jurisdiction becomes relevant;
• a new PEP or sanctions concern arises;
• the client becomes reluctant to provide information;
• explanations become inconsistent or incomplete; or
• the transaction no longer appears consistent with the original instructions.

The presence of any of these factors does not necessarily indicate wrongdoing. However, they should prompt further consideration.