This is an interview with Matthew Davis, Business Lawyer & Firm Owner, Davis Business Law
Can you introduce yourself and share your expertise in risk management and business law?
I have practiced business law for thirty years with deals ranging from start-ups to nine-figure transactions. I literally “wrote the book” on small business risk management titled “The Art of Preventing Stupid.”
How did your career path lead you to specialize in risk management and business law?
I started practicing law in a small city and quickly developed a clientele of local business owners. I realized that they all haphazardly wandered into common problems and pitfalls. It always aggravated me to see them struggle with these issues, so I developed ways for them to stay out of trouble and on offense!
Based on your experience, what’s the most common risk management oversight you’ve seen in small businesses, and how can it be addressed?
The catastrophes or disasters that businesses face are much more predictable than management wants to admit to themselves. Preventing or preparing for these issues is a function of robust brainstorming about the threats and then developing a plan of action. To do this effectively, management has to break the operations down and ask incisive, specific questions about vulnerabilities.
You’ve mentioned the importance of staying ‘retainer positive’ with clients. Can you elaborate on how this approach helps manage financial risks for law firms?
There are two big threats to a business’s cash flow. The worst is not getting paid, and the other is getting paid slowly. If you get paid up front, both of these go away and your cash conversion cycle is at zero days. This makes your firm exceptionally strong and financially stable.
In your practice, how do you help businesses navigate the intersection of risk management and compliance with ever-changing business laws?
We have a general counsel service we call the Strong Protected Business Program. It keeps our clients protected by a systematic and proactive approach to their legal needs. We like to say, “If you will deal with your vulnerabilities, you can capitalize on your opportunities.”
Can you share a specific case where your expertise in risk management significantly impacted a client’s business operations?
We had a client for whom we did a scheduled review of their insurance coverage. We caught a gap in the coverage and fixed it. Shortly after that, we had a huge claim that would not have been covered and that could have bankrupted the company.
How do you approach educating clients about the importance of proactive risk management in their business strategies?
We use best-practices checklists and ongoing work plans to engage in an objective manner. We also meet regularly because our clients intuitively pick up on threats. At almost every meeting, they will say, “Hey, I’ve been meaning to talk to you about…” Having a regular meeting makes sure we get updated.
About the Interviewee: Matthew Davis is the author of The Art of Preventing Stupid, a practical guide that helps businesses systematically identify and defend against common threats. Matthew is a frequent speaker and educator on topics including risk management and how companies can maximize value and service from their legal partnerships. As a practicing attorney, he helps businesses navigate challenges and seize opportunities with smart, strategic legal advice. He also leads his firm’s innovative Custom Legal Department Program, working hands-on with growth-minded entrepreneurs to proactively protect, improve, and scale their businesses.
