If you are considering a career in law, you may have heard the term “commercial awareness” mentioned more than a few times. It appears on application forms, within interviews and law firms talk about it a lot!
In this article, Steph Day, Careers & Employability Manager discusses how vital commercial awareness is for anyone hoping to work in legal practice, especially in commercial law.
What Is Commercial Awareness?
Commercial awareness is not regurgitating lots of legal and business jargon without knowing what any of it means or making sweeping statements about the economy or current news stories. Nor can you read one BBC Business article and call yourself an expert!
Commercial awareness is understanding how businesses operate, make money and stay competitive, and how legal issues impact all of that. It is about seeing the bigger picture, not just what the law is – but how it fits into the commercial world and affects your client’s objectives.
Why Does It Matter to Law Firms?
Law firms are businesses, and they want people who can help them win and retain clients, give practical advice, and be problem-solvers. Clients rarely care about legal theory, they care about what your services will cost them, what the risks are and what the outcome will be.
Law firms and their clients expect you to know how law firms and organisations operate, to know about market trends and be aware of regulatory changes and new laws affecting businesses. It’s important that you can identify and mitigate legal risks and understand business strategy.
How to Approach Commercial Awareness Questions Interviews
When a firm hires a trainee, they want someone who understands all of this – someone who can think with a commercial mind, not just a legal one. That is why, in interviews, firms ask about current events, market trends, and challenges they and/or their clients might face. They are testing your industry knowledge, how you think, and your understanding of how economic and political issues are affecting businesses today.
In an interview setting, they may require you to do a case study, you might be given a scenario like a commercial lease dispute, a cyber-attack on a bank, a merger between two law firms, or even a new product launch. You will get a few key facts and be asked to answer questions about the situation.
When tackling it, focus on spotting the legal issues, understanding the business angle, and identifying the main risks. Use your problem-solving skills and keep all stakeholders in mind, stay calm and structure your response clearly. Keep coming back to the main point, why it matters and what should be done about it.
How to Develop Your Commercial Awareness:
-
Read quality news: Get into the habit of reading publications like the Financial Times, The Economist, or the business sections of major newspapers.
-
Follow legal and business updates: Legal blogs, law firm newsletters and LinkedIn are full of insights into market and legal developments.
-
Network: Engage with people from all fields to broaden your understanding of how different sectors operate.
-
Think critically: When you read about a business story, ask questions such as: Who benefits? Who loses out? What are the legal angles? What would a law firm do here?
-
Practise applying your knowledge: Write short LinkedIn posts summarising key legal developments. Follow cases and think how you would approach it in the real world.
-
Show your commercial awareness in applications and your CV: When applying to firms, show that you understand their client base, key sectors and recent deals.
Commercial awareness is ultimately a way of thinking that develops over time, but only if you make time for it.
So, instead of scrolling endlessly on TikTok (which I am so guilty of!), why not read a news article, listen to a podcast or visit a legal platform to do further research.
Learn more in our Business Development for Junior Lawyers short course and Commercial Savviness masterclass on 6 November 2025.
Get involved and access CareerHub here: https://barbri.targetconnect.net/unauth
Here's some other skills you can pick up as a lawyer: https://www.barbri.com/resources/what-skills-does-a-solicitor-need
Join our community, SQE Future Lawyers and you'll find a wealth of resources and like-minded individuals within our group.
Interested in reading more? Fill out the form to read the full article.