The size and scale of the contracts that now underpin professional services businesses, together with litigation becoming the first step for many disputes, is amplifying the risks the sector faces. While technology is bringing positive change it will also create new threats and maintaining focus on due diligence will remain vital across professional services.
Jerry Sullivan
Head of Professions
Industry Risk Overview
The nature of the errors and omissions that professional services’ firms make has changed little over time, essentially the same mistakes are being made today as thirty years ago and business activities such as mergers and acquisitions remain the biggest area of potential concern. However, the marketplace itself has changed and continues to do so at pace, forcing professional services firm to retain their focus on the fundamental principles of good governance and due diligence.
Technology is transforming all aspects of professional services, with digital becoming the norm and in sectors such as architects and engineers the development of new building materials and techniques, often digitally created are opening up new areas of risk. At the same speed the trend to litigate first is adding fuel to ever increasing social inflation.
The size and scale of the contracts that now underpin professional services businesses, together with litigation becoming the first step for many disputes, is amplifying the risks the sector faces. While technology is bringing positive change it will also create new threats and maintaining focus on due diligence will remain vital across professional services.
