31 March 2026
The Victorian Legal Services Board and Commissioner (VLSB+C) has launched its Risk Outlook 2026, highlighting key risks that could cause significant harm to clients, affect lawyers' wellbeing, and erode community confidence in the profession.
This year’s list sees newer risks emerge since the last outlook in 2024, including lawyers engaging in mortgage financing and ethical risks facing in-house lawyers, while existing risks persist, ranging from cybersecurity concerns to the use of artificial intelligence.
Key risks identified by the legal regulator include:
- Role and reputation of the legal profession – this highlights unethical conduct by lawyers that harms clients and reduces trust in the profession including in motor vehicle accident claims, claim farming, mortgage financing. Ethical risks facing the in-house sector is also an area of focus
- Health and sustainability of the profession – which is impacted by sexual harassment, bullying, harassment and discrimination, and uncivil behaviour
- Professional competency – in the areas of artificial intelligence, identifying clients’ legal capability and vulnerabilities, and complying with new AML/CTF obligations
- Law practice management and systems – in particular, cybersecurity, costs disclosure, complying with trust accounting obligations, and providing adequate supervision.
Victorian Legal Services Board CEO and Commissioner, Fiona McLeay, is urging all lawyers to review the Risk Outlook 2026 and its practical resources to address these important risks.
“I am confident that the vast majority of lawyers in our profession are ethical and want to deliver high quality legal services to their clients. We have developed the Risk Outlook for them. Our aim with this Risk Outlook is to help lawyers identify the risks in practice and support them to take proactive steps to address those risks,” Ms McLeay said.
“By understanding and managing the risks to clients and themselves, lawyers can strengthen public confidence in the profession and uphold the integrity of the justice system.”
Unique to Victoria, the Risk Outlook 2026 marks the third edition of the regulator’s flagship initiative and is now available on the VLSB+C website.