Legal Technology Key to Compliance Risk Management, According to Survey
Inside counsel believe technology can improve risk management in meeting their compliance obligations and frequently base their new software purchasing decisions on the dual keys of reliability and security, according to AlixPartners’ fourth annual Litigation and Compliance Practices survey.
The survey was conducted of 300 general counsel and compliance officers from companies in North America and Europe with revenues in excess of $150 million. An overwhelming 96% of respondents said that the implementation of new technologies to mitigate risk has either increased or remained the same. Six in 10 of those polled said that data security is important in managing risk; 46% said information governance is critical to managing risk.
“Our survey reflects the concern by corporate legal and compliance officers that changing regulations and the threat of data breaches have produced a fertile ground for corporate litigation and high-impact disputes,” said Harvey Kelly, managing director and global head of AlixPartners Financial Advisory Services practice. “This year, corporate legal departments are increasingly seeking out new technologies and sophisticated tools that meet standards and provide security to not only ensure compliance but also protect data from the risk of exposure and the litigation that may ensue.”
When asked what specific steps they are taking to reduce compliance risk, the top four answers cited by corporate executives were the remediation of compliance gaps, conducting audits, education and training, and implementing new technologies to reduce litigation risk:
- Compliance program gap identification – 55%
- Compliance audits – 47%
- Education and training – 47%
- New technology – 38%
Specifically, the survey found that eDiscovery tools are increasingly in use to mitigate and manage risk, with 40% of respondents saying they will only work with eDiscovery providers that offer the highest level of compliance and nearly one-third of respondents reporting they will pay more for service providers that offer certified data centers.
“Corporate executives are discovering that the new generation of eDiscovery software products provides them with powerful tools that significantly improve their ability to reduce compliance risk,” said Steve Ashbacher, vice president of litigation solutions with the LexisNexis software and technology business. “These tools deliver accuracy, speed and a seamless chain of custody in the collection, processing and review of data.”
For example, Ashbacher noted that Lexis® DiscoveryIQ, a fully integrated enterprise eDiscovery software platform developed by LexisNexis and enhanced by Brainspace Corp., uses machine-learning analytics technology that works the way the human brain works to improve speed, performance and scalability. This makes the platform ideal for corporate investigations as well as litigation.
To download a summary of findings from AlixPartners’ 4th Annual Litigation and Corporate Compliance Survey, please click here.
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