The Deepwater Horizon Oil Gig Explosion: A Lesson for us in the Importance of Continuous Improvement

In the realm of industrial accidents, the Deepwater Horizon oil explosion in April 2010 is still considered to be the largest environmental disasters in world history.  The incident is a stark reminder of the consequences that can unfold when safety methods and checks are not continuously updated and still serves as a poignant example of the perils that arise when complacency replaces a commitment to improvement. Ironically, just a day before the disaster, the gig had proudly accepted an award for its spotless safety record.

It's a good example to teach us about the significance of continuous improvement in legal compliance, where every file needs to speak for itself, and the regulators are penalising instances of non-compliance more and more.

The Horizon Oil Gig stood as a symbol of pride and accomplishment. Its sterling safety record was applauded (the evidence that was cited is that “they had never had a problem”), and the company received accolades for its flawless operations.  However, beneath the surface, a dangerous complacency had settled in. The lack of updating safety methods and checks had created an environment ripe for disaster, and BP were found not only to have implemented a series of cost cutting decisions, but to also have “systemic” failures towards safety and keeping up to date with both industry and government practices and policies. Safety protocols were treated as static entities rather than as evolving processes that adapt to new and evolving regulations and risks.

The recent cases and information being reported by the Solicitors Disciplinary Tribunal and the Solicitor’s Regulation Authority (SRA) illustrate a mirror issue in law firms.  A non-solicitor was fined for not following internal AML procedures in relation to the firm’s source of Funds/Source of Wealth (April 2023). A small firm was fined the highest fine to date for lacking AML controls, or having a firm-wide risk assessment. The SRA has published that 7 out of 10 firms still do not have cyber insurance (despite the industry example of the Simplify Group being hacked and the consequences it and their clients suffered). Only 4 out of 10 CQS regulated firms have been accredited with Cyber Essentials, and of all the firms inspected thus far, none yet has been found to be 100 % complying with the CQS standard. A conveyancing fee earner was banned this year for stealing SDLT monies across different transactions– to the tune of £338,000.

Public examples of non-compliance across the industry are coming to light weekly.

Whilst the ramifications of non-compliance in law would not create the death toll to both humans and wildlife, nor result in being the largest environmental disaster the world has seen, the ramifications are serious for the businesses that are fined – financially and  reputationally, not to mention the impact on the firm’s Professional Indemnity Insurance, and the unspoken impact it has on the people involved.

It’s time to consider how you can bring continuous improvement processes and behaviours into your teams and firm, and prioritise them. Reward them in appraisals and salaries. Write the required behaviours into your software, and run exception reports to find non-compliance. Deal with internal offenders, and record everything that happens at matter level – even if you have great written policies.

Escaping non-compliance is no longer an option. Dealing properly with all compliance requirements is as essential to your legal practice as your staff and case management/practice management systems.