Historically, electronic discovery has been treated as a reactive process — it is only when a discovery request is made that companies typically begin collecting, sorting and categorizing electronic data against a tight deadline.
This fire-drill approach has proved extremely expensive, particularly as increasingly greater volumes of corporate data are stored electronically across multiple systems. Not only can the reactive approach expend a tremendous amount of corporate resources — including information technology, legal, compliance, records management and others — it also increases the risk that the company will later be found to have not fully complied with its obligations, either due to a failure to timely retain records or an inability to meet the deadline. Failure to reasonably respond to requests can have serious tactical, financial and reputational consequences.
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