Your business faces significant risks when confronting litigation, investigations or regulatory matters involving electronically stored information. Despite the gravity of potential consequences, most companies are still struggling to understand what the legal requirements are and how to develop a comprehensive plan to manage electronic information when the necessity arises. 
 
Most organizations suffer from a severe lack of understanding, preparedness and enforcement on how to manage their Electronic Information. At least one study suggests that approximately half of companies have no plan in place at all.  As electronic communications increase exponentially each year, the issues will become ever more problematic for companies that fail to educate themselves and take action. Moreover, the costs associated with fines, sanctions and lost cases could be debilitating to some corporations. The bottom line is, it pays to be prepared.

Whose responsibility within the organization is it to create a viable Electronic Information plan, and who is accountable if the plan fails?  While the overall responsibility of creating an Electronic Information policy lies largely with lawyers, Electronic Information is a business issue that affects nearly every department. A cross-development approach to Electronic Information involving legal counsel, the Board, the Executive team, IT division and the compliance department is crucial. If a cooperative approach is taken, accountability and responsibility will be shared by all those involved.  Additionally, making enforcement a shared responsibility will better ensure compliance.

Incorrect handling of Electronic Information in litigation and investigations leads to a number of serious consequences for organizations.  Monetary fines, issues and evidence sanctions, and even default judgments are becoming more and more common consequences of a litigant's failure to adequately manage the retention and production of Electronic Information.  Consequently, senior decision makers need to take ownership of this issue and ensure that a multi-disciplinary Electronic Information team works together to develop a policy and enforce it within the organization. Organizations that choose to take control of their Electronic Information practices are emerging stronger and better equipped to protect informational assets, increase operating efficiency and realize cost savings.