Content and risk management - Providing accurate and tailore...

Learning Outcomes

This article explains how to provide accurate, tailored legal advice to clients while effectively managing risk in professional practice, including:

• diagnosing the client’s real problem, objectives, constraints, and risk appetite through structured fact-gathering and interviewing
• structuring legal analysis by linking legal tests to facts and evidence, identifying uncertainties, and planning targeted research
• developing and presenting realistic options and outcomes, with clear recommendations tied to the client’s objectives and constraints
• applying practical risk management techniques, such as identifying and prioritising risks, defining the scope and assumptions of advice, and agreeing action plans
• communicating advice clearly in writing and orally, using plain English, logical structure, and explicit warnings about significant risks and consequences
• maintaining thorough records of advice, instructions, decisions, and costs information to reduce misunderstandings, complaints, and potential negligence exposure in line with SQE2 expectations

SQE2 Syllabus

For SQE2, you are required to understand how to provide accurate, relevant, and appropriately tailored legal advice, with a focus on the following syllabus points:

• the principles of collecting and analysing all relevant facts before advising
• delivering advice suited to the client’s needs, objectives, risks, and constraints
• specific techniques for structuring advice (written and oral) in response to real or hypothetical client problems
• identifying legal, practical, and reputational risks arising from your advice or the client’s actions
• communicating clear next steps and managing client expectations
• documenting the scope of your retainer, assumptions, and limits to your advice
• using plain English and logical structure to present options, conclusions, and actions
• keeping accurate records of advice, warnings, client decisions, and costs/time estimates

Test Your Knowledge

Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.

1. What should a solicitor do if a client insists on a course of action that carries legal risk or is outside their best interests?
2. Why is it important to confirm a client’s objectives and constraints before giving formal advice?
3. In advising a client, what steps should always be taken to reduce the risk of misunderstanding or potential complaint?
4. Name one method for structuring your analysis and risk management when providing client advice.

Introduction

Providing effective legal advice is a core requirement of professional practice, tested in the SQE2 assessment. This means recognising the client’s individual objectives and circumstances, gathering all relevant facts, and giving advice that is both accurate and expressly tailored to them. You must identify and manage the legal and practical risks arising in each matter. The risk management process includes clear communication, appropriate documentation, and ensuring your client understands the next steps and any consequences. Good practice also requires you to define the scope of your work, state assumptions, and explain uncertainties. Your recommendation should be aligned to the client’s risk appetite and constraints (for example, time, cost, cash flow, reputation, or commercial relationships).

Key Term: tailored advice
Tailored advice is legal guidance that addresses the client’s specific facts, objectives, needs, risks, and circumstances, rather than abstract or standard information.

Key Term: risk management
Risk management is the systematic process of identifying, analysing, and mitigating legal, practical, and professional risks in the course of providing advice or handling a client matter.

Problem Diagnosis and Fact Gathering

Effective advice relies on understanding the client’s real problem and gathering all information relevant to it. This process involves investigating the client’s goals, constraints (such as cost, time, or confidentiality), and factual background. Assumptions must be avoided, and details confirmed wherever possible.

If there are uncertainties, unclear facts, or points on which your client or the other party may be mistaken, these should be explored and clarified before you commit to firm advice.

Use structured interviewing techniques:

• Start with open questions to encourage a full narrative (“Tell me what happened…”), then move to more focused, closed questions to test and verify details. This funnelling technique helps you build from an overview to particulars without missing key points.
• Listen actively for facts and feelings. Clients often reveal hidden constraints (cash flow pressures, a strategic need to preserve a business relationship, or significant stress) which shape options.
• Use checklists as topic prompts rather than rigid scripts. A fixed list can prevent you from following up important cues. Map topics in a circle or mind-map so you can cover everything while remaining flexible.
• Confirm the client’s objectives and risk appetite early. Ask what outcome they most want, what they can afford (time and money), what they must avoid (e.g., publicity or precedent), and which trade-offs they can tolerate.

Gather facts in categories for efficiency and completeness (for example: parties and relationships; chronology; documents; financials; regulatory context; witnesses and evidence; deadlines and limitation). For each category, note both confirmed facts and uncertainties. Where important facts are missing, identify what further enquiries are required (such as documents, third-party information, expert input) and agree with the client a realistic plan to obtain them.

Structuring Legal Analysis

Once you hold all material facts, identify the relevant legal issues and ascertain any risks to the client or your practice. Analysis should be concise, solution-focused, and reflect the client’s aims, possible obstacles, and real-world limitations such as time, resources, and the client’s risk appetite.

Key Term: legal analysis
Legal analysis is the process of applying the law to facts in order to advise a client, including identifying relevant issues, options, risks, and preferred approaches.

Organise your analysis using an issues-and-evidence framework:

• Identify the legal context(s) and the cause(s) of action or regulatory regimes engaged.
• For each issue, set out the legal test or elements to be proven, then marshal propositions of fact and the evidence that will support (or undermine) each element. This creates a clear link between law, facts, and proof.
• Record uncertainties and gaps (for example, absence of a key document), the impact on prospects, and the steps needed to fill those gaps.
• Acknowledge ambiguities in the law and where outcomes may turn on discretion or judgment. Explain the practical effect (e.g., range of outcomes or settlement parameters) rather than citing doctrine abstractly.

A helpful mental model is to separate “symptoms” from “causes” of the problem and then identify desired “outcomes” and “constraints.” For example, a threatened claim may be a symptom of a wider contractual or compliance failure; practical outcomes may include preserving a supplier relationship or avoiding publicity; constraints might be cost limits, short timetables, or lack of documentation.

Finally, plan any targeted legal research. Focus on primary sources and up-to-date commentary specific to the issues you have identified, and flag in your advice any points where the law is unsettled and professional judgment is required. Be explicit about how any additional research might change your preliminary view.

Advising the Client: Options and Outcomes

It is rarely appropriate to give a client only one option. Instead, provide the available approaches, including advantages, disadvantages, risks, and potential costs of each. Always relate your advice back to the client’s objectives and constraints.

Advise the client on likely outcomes, including possible successes or failures, costs, timescales, and any negative consequences. Where outcomes depend on evidence or unpredictable factors (such as a judge’s discretion), this must also be explained clearly.

Clients want clarity, not a recital of law. State a conclusion and a recommendation. If the position is uncertain, say so plainly, explain why (e.g., contested facts or absence of authority), and make a reasoned recommendation on what they should do next. Tell the client what to do, by when, with what documents or funds, and what you will do on their behalf.

Use plain English and clear structure:

• Begin with a self-contained summary: question, short answer, key risks, and urgent actions.
• Present options with pros, cons, and costs/timeframes, then recommend one route and explain why it best meets the client’s objectives and risk appetite.
• Include non-legal considerations where relevant (cash flow, operational disruption, reputational exposure, stakeholder expectations).
• Where a client audience is mixed (legal and non-legal), consider a brief summary for circulation and attach a separate annex with legal detail for the in-house lawyer.

Worked Example 1.1

A client is considering whether to defend a claim that, if lost, could lead to bankruptcy. They want advice on prospects and strategy but also need to know about risk and options.

Answer:
After confirming all key facts, advise the client of both the realistic prospects of success and the risks (including costs, adverse costs, and the possibility of bankruptcy). Explain alternative options, e.g., defending, negotiating settlement, or seeking early legal protection. Clearly document and communicate the advice, risks, and next steps.

Worked Example 1.2

A client wishes to pursue a business venture but is unaware of possible regulatory hurdles and financial liabilities if they proceed hastily.

Answer:
After analysing the client’s plan, you should identify legal and regulatory barriers (e.g., licenses, capital requirements), financial risks (e.g., liability for unpaid debts), and alert the client in clear terms. Offer alternative approaches to manage these risks (e.g., phased approach, insurance, obtaining further financial advice). Document all advice and confirm understanding.

Worked Example 1.3

An employee client has been dismissed for alleged misconduct. They seek advice on challenging the dismissal, preserving references, and managing costs.

Answer:
Confirm facts (process followed, notice, investigation materials) and objectives (reinstatement, compensation, clean reference). Outline options: internal appeal; ACAS early conciliation and settlement; tribunal claim (unfair dismissal, potential wrongful dismissal for notice pay). Explain merits depend on procedure and evidence; set out costs, timeframes, and stress involved in litigation; highlight reputational dimensions (future employment). Recommend an internal appeal (low cost, fast) and parallel settlement discussions through ACAS aiming for compensation and an agreed reference; preserve tribunal limitation dates. Confirm scope, next steps, and record instructions.

Worked Example 1.4

A start-up fintech client plans a new product that may involve regulated activities and cross-border data processing. They want “go/no-go” advice within two weeks.

Answer:
Identify objectives (speed to market vs regulatory certainty) and constraints (tight timeline, limited budget). Explain options: (1) proceed now with a limited beta under a sandbox or exemption, while completing authorisation analysis; (2) pause launch, obtain regulatory advice/clearances, and implement compliant data transfers; (3) partner with an authorised firm to launch under their permissions. Outline legal risks (unauthorised activity, enforcement, data protection breaches) and practical risks (delay, engineering changes). Recommend option (3) as quickest compliant route, with an action plan: engage partner, scope permissions, implement data processing addendum and transfer mechanism, and schedule a phased direct authorisation track in parallel. Confirm deliverables and timeline in writing.

Risk Management in Client Advice

Managing risk does not mean eliminating all possible poor outcomes, but rather recognising hazards (legal, financial, reputational) and addressing them with the client before decisions are made. This includes:

• confirming complex or uncertain points with further research or specialist input
• warning the client clearly (in writing if significant) of foreseeable risks or consequences
• documenting the advice given and the client’s instructions, especially if the client proceeds against advice

Where a client insists on a high-risk course of action, you should record your advice, the risks identified, and the client’s decision in writing.

Embed a simple personal risk-management routine:

• Identify the client’s goals and success criteria.
• List key risks (time limits, evidence gaps, counterparty solvency, regulatory exposure, costs).
• Prioritise risks by likelihood and impact.
• Devise mitigation steps (urgent evidence preservation, interim relief, insurance, staged commitments, confidentiality measures).
• Define the scope and assumptions of your advice. Make it clear what you have and have not done (for example, “this advice does not cover tax or foreign law”).
• Agree an action plan with responsibilities, dates, and dependencies.
• Keep under review: risks change as facts emerge.

Also consider compliance and practice risks: conflicts of interest, confidentiality and data protection (particularly in email chains and document sharing), supervision, and accurate file notes. When using email, use meaningful subject lines, highlight deadlines, and confirm decisions. Avoid ambiguous phrasing; do not rely on implied understandings.

Exam Warning

If you fail to warn a client in writing about significant risk or consequences, you may be exposed to complaint or potential negligence claim. SQE2 assessment expects explicit communication and clear records.

Communication and Client Management

Advice must be delivered in a manner the client can understand—this is central to professionalism and risk management. Use accessible language and avoid legal jargon wherever possible. Ensure the client is aware of:

• recommended next steps
• required actions (by client or solicitor)
• the timeline for further work
• who to contact in your absence

Reiterate costs and the basis on which fees or disbursements are charged. Summarise your advice in writing, including all core points above.

Apply plain-English and structural techniques:

• Write short, direct sentences (aim for an average of about 20 words). Prefer subject–verb–object structure.
• Start with a brief summary before detail. State the conclusion and recommendation early.
• Avoid unnecessary passives. “We will apply for relief by Friday” is clearer than “An application will be made.”
• Be specific about timeframes and amounts. Replace “soon” and “substantial” with ranges or dates.
• Avoid ambiguous connectors. Be precise with “and”/“or” and avoid “and/or” by restructuring. Clarify whether a list is conjunctive (“all of the following”) or disjunctive (“one of the following”).
• Use “that” vs “which” correctly; use “that” to define and “which” (with a comma) for non-defining clauses.
• Handle dates and deadlines carefully. Specify whether a date is inclusive and, where appropriate, a time and time zone (e.g., “by 17:00 UK time on 14 March 2026”).

For email communication:

• Use meaningful subject lines and surface deadlines.
• Put the call-to-action at the top; long analysis can be in an attached note.
• Keep tone professional; avoid slang and text-speak.
• Proofread—typos and grammar errors undermine confidence in your legal accuracy.

Revision Tip

In the exam, always structure your written (or oral) advice by identifying key facts, the relevant law, options and risks, and clear next steps.

Ensuring Clarity and Reducing Complaints

Complaints often arise where risks were not identified, or clients are not warned about possible adverse outcomes. Good risk management and advice involves:

• ensuring the client fully understands any instructions or documents before signing or proceeding
• using checklists or ‘action plans’ to confirm the agreed steps
• promptly summarising all advice, warnings, and agreed decisions in writing

Close every meeting professionally:

• Ask, “Is there anything else we should discuss today?” to surface hidden issues.
• Confirm next contact, actions, deadlines, and who is responsible for each step.
• Provide costs information and any updates to estimates.
• Record limitations and assumptions (e.g., pending documents, expert opinions, or research) and agree how to address them.
• File your note promptly; where appropriate, send a concise confirmation letter or email for the client’s records.

Key Point Checklist

This article has covered the following key knowledge points:

• Accurate, tailored client advice requires full fact gathering, active listening, and clear problem definition tied to the client’s objectives and constraints.
• Structure legal analysis by linking legal tests to facts and available evidence; identify uncertainties and plan to address gaps.
• Options should be presented with clear explanation of benefits, risks, costs, timescales, and likely outcomes, followed by a reasoned recommendation.
• Good risk management includes anticipating, communicating, and recording risks; defining scope and assumptions; and agreeing action plans with dates and responsibilities.
• Advice should be confirmed in writing, with next steps, costs, and deadlines specified; emails should be clear, concise, and accurately titled.
• Plain-English drafting, careful use of “and/or,” “that/which,” and specific timing language reduces ambiguity and complaint risk.
• Clear communication and complete records reduce misunderstanding and help meet SQE2 assessment criteria.

Key Terms and Concepts

• tailored advice
• risk management
• legal analysis