Corporate Counsel Are Tackling Their Data Risk All at Once: Can They Do It?
A new BDO study finds a lack of priorities in data-related spending could, eventually, leave companies overstretched.
April 02, 2018 at 12:30 PM
4 minute read
A recent study from consulting group BDO USA of around 100 senior in-house counsel for companies with revenues between $100 million and $5 billion found that these larger organizations are spending increasing amounts of time and resources thinking about how to protect and use their data.
So far, however, the organizations haven't really prioritized much about where exactly those resources should be allocated.
George Socha, managing director in BDO's Forensic Technology Services practice, explained that companies are now thinking broadly about how to manage their data. The explosion of major data breaches has more organizations thinking about their cybersecurity and information governance strategies, while e-discovery continues to be a major concern for organizations. Furthermore, the upcoming General Data Protection Regulation (GDPR) has now forced data privacy into the purview of data privacy conversations.
Indeed, the survey noted that 90 percent of organizations polled said they have an information governance plan in place (of these, 47 percent are headed by a chief information officer, while 42 percent are led by legal departments). Seventy-three percent of survey respondents believe their boards are more involved in cybersecurity than they were last year, and 48 percent are currently looking ahead toward GDPR compliance.
The BDO survey shows that both spending and interest in these areas are either holding steady or growing. As a long-term strategy, however, Socha finds that this kind of full-court press around data security will likely be unsustainable. “That can't work well in the long haul. We're going to have to ask some questions about trade-offs,” he said.
“I suspect most folks aren't confronting that reality yet, and they're going to have to sort out how to sort that out,” Socha added.
Perhaps unsurprisingly at this point, the massive increase in both value and volume of data has made navigating data analysis and cybersecurity a much different ballgame than it has been historically. Forty-seven percent of respondents flagged Big Data as one of the e-discovery issues likely to have the greatest business impact on their organization, way up from 28 percent who said the same last year.
Large organizations seem to have figured out that technology can serve them well in navigating this data. Nearly half, 48 percent, of respondents report using computer-assisted review in their e-discovery, while 31 percent report using business analytics to manage their project review.
Socha cautioned that the increase in data presents difficulties beyond just moving through data. While a great deal of time and investment has gone into developing tools to analyze data quickly and effectively, managing and securing data from the wide set of sources companies now have to account for is still a challenge. “In many ways, we still don't have the tools or the techniques to do that,” he said.
Socha thinks that information governance spending is likely to help organizations get the most out of their data resources. “Companies gave information governance lip service, but not budgets. I think what some organizations are realizing is that money well spent on information governance, and you can waste money on it, but money well spent on information governance can pay significant dividends when you get to those other areas like e-discovery and GDPR,” he said.
“Information governance is about getting your electronic house in order. When your house is in order, you can find stuff better, you don't have stuff hanging around that you don't want or need,” he noted.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllTrending Stories
- 1AI: An Enhancement, Not a Replacement for Attorneys
- 2Fowler White Burnett Opens Jacksonville Office Focused on Transportation Practice
- 3Auditor Finds 'Significant Deficiency' in FTC Accounting to Tune of $7M
- 4'A Mockery' of Deposition Rules: Walgreens Wins Sanctions Dispute Over Corporate Witness Allegedly Unfamiliar With Company
- 5Call for Nominations: TLI's Pennsylvania Legal Awards 2025
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250