The volume of information circulating around businesses on a daily basis continues to grow exponentially. And reviewing all of that information is therefore also increasingly becoming a time sink – so much so, in fact, that human eyes alone no longer suffice and the process is at least partially automated. Despite the risks involved, however, the review process is often skipped – until the company winds up on the receiving end of a major claim. Various IT resources can provide the solution. But how advisable is it really to replace the entire review process by a software application?
Organisations start getting antsy when a regulator is scheduled to visit or they are about to embark on a restructuring operation or other major transaction. This is when they become aware that there is simply too much data and information floating around – both structured and unstructured – to review manually. Thousands of e-mails containing attachments, zip files and other digital files contain all crucial information. But how do you whittle down 1.5 million documents to 10,000, and – once you’re done – how do you organise them efficiently? The entire process of reducing, arranging and assessing the relevance of large numbers of electronically stored documents – a process known as ‘document review’ – is becoming the bane of many a company, particularly for their legal, compliance and risk departments.
Complex search
Document review is part of the more comprehensive e-Discovery process, the pre-investigation stage in lawsuits, as widely practised in the United States. It refers to the stage of the US legal process in which all parties involved are required to make relevant documents available to the opposing party. However, the methods used in this e-Discovery procedure can also be applied to other legal processes common in the Netherlands.
Document review is the most labour-intensive part of e-Discovery. This is only set to grow worse, since, in addition to the explosive growth in the amount of information, this information is also becoming increasingly scattered across various systems and various formats. Legal departments and legal professionals therefore spend a significant amount of time searching for relevant information. If this work is performed only by attorneys, businesses will inevitably see a spike in expenses. Another drawback is the amount of pressure it puts on the employees of the companies who are responsible for supplying the documents and information.
Combination of 3 factors
The speed and flexibility (through the use of specialist reviewers) of the document review process can be improved in order to make it more cost-effective. This also extends to the division of duties. If highly skilled professionals such as attorneys and auditors no longer need to spend an inordinate amount of time searching documents, they can fully focus on their case or deal.
Efficient document review is a combination of 3 factors:
- A well-managed process. The first step in this process is defining a clear scope, followed by an assessment of which activities can be performed manually and which can be done using software. Other key points are the organisation of the traceability (that is, the entire process must be auditable), how to collect and organise metadata, and whether there are adequate safeguards in place to protect the privacy of the individuals concerned.
- Appropriate software. Depending on the number of different types of Electronically Stored Information (ESI) and source systems which must be searched, there is always a suitable software solution available.
- A smart team. A smart document review team includes people with different types of skills and levels of expertise. You need experienced reviewers who know how to screen legal documents and possess the IT skills needed to use different types of software alongside each other. In fact, being IT-savvy is essential to a streamlined document review process. Furthermore, knowledge of national and international eDiscovery guidelines ensures that processes are conducted efficiently and at a high quality level.
There are often also additional duties to be performed, such as training staff in the Legal department, effective project coordination and document production. A smart combination of the three factors – process, software and people – facilitates an effective and efficient process. This type of process makes it possible to search and review large amounts of structured and unstructured data contained in documents in a relatively short period of time.
Solution
The reality is, however, that many companies have yet to adopt a data classification system. It may not be clear, for example, what information is available at any given time and who is authorised to access the documents. Data migration into the cloud and the growing use of SaaS solutions further compound the risks, resulting in the wider dissemination of business information. The e-Discovery methods increasingly provide a good solution for keeping track of this business information and establishing an effective system of information governance.
Where in the legal sector do we see the greatest proliferation of data?
Litigation and competition are at the top of the list by some distance. The number of electronically stored documents which must be examined in preparation for lawsuits often runs into the millions. The transaction process is number 2 on the list. In setting up an effective data room, it is therefore essential that the correct documents are provided, including contracts, financial information, and so on. In addition to the amount of information, the speed with which information needs to be produced also poses a significant challenge to all parties concerned.
Legadex and document review
Our own document review team combines all three of these factors. In addition to having partnered with various major software providers over the years, the team has also mastered the various process steps. They specialise in analysing information and conduct an in-depth review of the content and context of the ESI. A recognised and commonly used model for e-Discovery is the Electronic Discovery Reference Model (EDRM). This model shows the various steps that make up the discovery process and how these steps can be completed. Legadex works in accordance with the EDRM model.