Risk Awareness and Management – supporting you through our Risk Management Library
We all face risks in our daily lives and managing them often becomes second nature, whether it’s wearing a seatbelt, taking out insurance, or protecting our bank details. In our professional lives, however, risks can be more complex and less visible, making awareness and proactive management essential.
At CILEx Regulation, we believe that sharing information about risks, and how to mitigate them, is more important than ever, especially given the evolving threats faced across the legal services sector.
The Risk Management Library – what it offers
Our Risk Management Library is designed to support our entire regulated community, regardless of your role or the organisation you work in. It provides practical insights and resources to help you:
- Identify common risks encountered in day-to-day legal practice
- Understand the benefits of implementing policies and procedures to manage those risks
- Access additional support and guidance from CILEx Regulation and trusted external sources.
Additional Resources
Alongside our own materials, we’ve published guidance and papers from other organisations that offer valuable perspectives and tools to help you manage risk effectively.
Whether you’re a sole practitioner, part of a larger firm, or working in-house, the Risk Management Library is here to help you build a safer, more resilient practice.
The risk from money laundering – what you need to know
The UK Government continues to place strong emphasis on tackling money laundering, disrupting organised crime, and preventing the financing of terrorism. Legal professionals are seen as potential targets due to the perceived legitimacy their services offer, making this a critical risk area for the sector.
Why it matters
The legal sector is highlighted in the 2025 National Risk Assessment (NRA) as being vulnerable to money laundering through:
- Conveyancing and property transactions
- Trust and company formation
- Misuse of client accounts
- High-value transactions involving opaque ownership structures
The 2023-24 HM Treasury AML/CTF Supervision Report reinforces the importance of strong supervisory standards and proactive compliance across all regulated sectors, including legal services. Supervisors are expected to monitor and improve standards in preparation for future reforms.
What you should do
To help combat this risk, CILEx Regulation provides dedicated guidance and resources on our Anti-Money Laundering webpage. We encourage all firms and individuals to:
- Update your risk register and Practice-Wide Risk Assessment (PWRA)
- Reflect the findings of the 2025 NRA and HM Treasury’s Supervision Report
- Review your policies, controls, and procedures to ensure they are proportionate and effective
- Stay informed about emerging threats, including the use of cryptoassets, complex ownership structures, and sanctions evasion.
Our approach to managing risk when authorising Entities
CILEx Regulation takes a risk-based approach to authorising and supervising entities. This ensures that only those organisations which meet our standards and demonstrate a commitment to compliance are approved for regulation.
We have published a series of documents that outline:
- How we assess applications for authorisation, including licensing
- The risk factors we consider during desk-based authorisation and ongoing supervision
- The types of entities we believe are suitable for regulation by CILEx Regulation
These documents are designed to provide transparency and clarity for applicants and regulated firms.
What you should read
To fully understand our authorisation process and expectations, these documents should be read alongside:
Together, they provide a comprehensive overview of how we manage risk and ensure high standards across our regulated community.
Additional Resources
- Cyber Security Guidance
- Financial Sanctions – Russia and Your Responsibilities
- Anti Money Laundering Guidance.
