Kroll Ontrack study: companies not prepared for e-discovery.
Position | E-DISCOVERY |
[ILLUSTRATION OMITTED]
While most companies have a document retention policy in place, far fewer have implemented an e-discovery readiness plan to handle e-discovery requests, according to a recent study from Kroll Ontrack.
"The 2009 ESI Trends Report" surveyed 461 IT professionals and in-house counsel from the United States and Britain. It found that, no matter which side of the pond they are on, many companies are just not prepared for e-discovery. In fact, the study revealed most firms deal with e-discovery requests on a case-by-case basis, despite increasing demands for ESI. This costs them time and money, not to mention increases the risk of sanctions and fines, Kroll Ontrack said.
The report found that 87% of U.S. companies and 80% of British firms have a document retention policy, but only 46% and 41%, respectively, have a policy addressing e-discovery readiness.
Kroll Ontrack found that many companies rely on their document retention policy to help them respond to e-discovery requests. But this means companies must either design fresh litigation-hold protocols for every case or risk not implementing the hold. This could result in lost or spoiled information, according to Jason Straight, senior managing director of Kroll Ontrack's ESI consulting practice.
This year's survey also reveals 77% of U.S. companies and 56% of U.K. companies believe their ESI discovery policy or strategy is repeatable and defensible. Only 57% of U.S. and 39% of U.K. corporations have procedures in place to preserve potentially relevant data when litigation or a regulatory investigation is anticipated.
Among companies that do have an e-discovery readiness policy, the Kroll Ontrack survey shows IT and legal departments typically share responsibility. Twenty percent of U.S. and 13% of British companies say responsibility lies principally with the chief information officer and IT management, while 35% of U.S. and 21% of British companies said their IT and legal...
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