What is ‘Commercial Awareness’ and how to develop it

If you are an aspiring lawyer, then possessing commercial awareness is crucial. This article provides tips on developing the skill.

If you are entering the world of Commercial law for the first time, I can assure you that you

will hear ‘commercial awareness’ being thrown around countless times. If this is not your

first ‘application season’, you will undoubtedly be familiar with this stock phrase. Let’s break

down what commercial awareness really means and what you need to do to get a slice of it.

What is Commercial Awareness?

Although it sounds like quite the mystic topic, it is not nearly as complicated as you would

think. In a nutshell, commercial awareness is the understanding and appreciation of how

businesses work and what factors could affect their performance. This knowledge is highly

valued across all sectors, whether that is banking, consultancy or law. Law firms are

businesses too, so an understanding of how they operate and how their clients operate is

incredibly valuable.

Using a law firm as an example, commercial awareness would mean having an

understanding of (but not limited to) how the legal sector operates, any general economic

or regulatory trends which will affect the sector and what the oncoming challenges for the

industry may be.

Why is Commercial Awareness valuable?

As the competition for graduate roles and training contracts increases, it is important to

understand what employers are really looking for. Commercial awareness is usually at the

top of the list for graduate recruitment; they are looking for candidates who have a genuine

interest in the legal sector and how wider changes will have an impact on how the firm

operates. Firms will certainly put your knowledge to the test at some point in the

application process – it might be on the application form or in the form of a ‘case study’

focused interview.

However, developing this knowledge early will not only help you stand out in the application

process but will also stand you in good stead for when you enter the world of work.

Understanding your clients and the kind of events that affect their business performance

and strategy will be part of your everyday life!

How to boost your Commercial Awareness?

There are so many simple ways to improve your commercial awareness. Even if the

intricacies of financial markets seem overwhelming, there are plenty of resources available

to help demystify the business world.

To start, an ongoing narrative of current affairs and changes in the geopolitical climate is a

good foundation to understand potential threats or opportunities for businesses and

professional services. Reading the news seems like a given, but I promise, it really does

make a difference and will give you the confidence to discuss a topic in detail.

For more tailored updates, many law firms have an ‘Updates/News’ section on their website

which talks about changes in regulation, for example, or other topics which will affect their

work and that of their clients.

Finally, many websites offer commercial awareness updates delivered straight to your

inbox. I’d personally recommend subscribing to the Bright Network Commercial Awareness

updates – these are weekly, easy-to-read updates which discuss important changes in

global politics or economics and give you some thinking points to relate to your desired

sector. Developing your commercial awareness is an easy, but extremely effective way of

boosting your chances of success in applications and will give you confidence in those all-

important case study interviews.