discovery

E-discovery still a problem for financial firms

Jim Kim — Fri, 06 Jun 2008 17:15:06 -0400

Data retention has been a huge issue in the Sarbanes-Oxley era. In many ways, it is responsible for the growth in data centers we're now seeing. For some firms, the Federal Rules of Civil Procedure kicked the anxiety to a whole new level. Still, some firms, notably smaller financial services firms, are still struggling with compliance. All the while, the chances of getting burned by a surprise e-discovery case keeps going up. Finance Tech notes this is the equivalent of Russian roulette. The task can seem overwhelming. E-mail archiving alone is a pain. Throw in instant messages and the like, and you've got a bigger headache. This is only going to worsen, so now is the time to get a grip. One idea is outsourcing. But you have to be careful. As the article notes, big Wall Street firms tried this and found the costs were too high; they brought it all back in house. Smaller companies may, however, discover (sorry) a different cost dynamic.

For more:
- here's the article
- here's 10 tips on how to move e-discovery into the enterprise

ALSO NOTED: Banks say no to Sarbox-like set of rules;

Tue, 15 Apr 2008 06:59:58 -0400

> Bank reform and IT issues. Article
> Building a home-grown auditing system with SQL server. Article
> Justice trends away from trials. Article
> Some background on Sarbanes and how companies have dealt with it. Article
> Banks say no to Sarbox-like set of rules. Article
> How long to restate earnings? Article
> Forensic tools aid e-discovery probes. Article
> How much D&O insurance do ex-directors need? Article
> Fraud related restatement decline. Article
> Justice trends away from trials. Article

And finally ... Wall Street refugees seek new careers in finance. Article

The pain points for compliance support

Tue, 08 Apr 2008 06:59:59 -0400

Computer Technology Review brought together three experts to discuss compliance, e-discovery and relevant IT issues. One question was about the "pain points" that companies likely will feel this year. The answer ran along these lines: somehow store and accounting for all types of electronic communications in a way that satisfies all departments, from IT to legal, at a time when the budget isn't likely to expand. To keep up, you may be looking at some upgrades, to a new Exchange version at least, that may prove costly. But when the budget rubber hits the road, you will be forced to come up with ways to Band-Aid your current system. Good luck. Probably a good idea to look into this now. The last thing you want is to come up short during a legal proceeding.

For more:
- here's the Computer Technology Review item

Related Articles:
Compliance readiness: A way of life. Article
Compliance basics for the uninitiated. Article

ALSO NOTED: Citigroup seeks more financial expertise for board;

Tue, 08 Apr 2008 06:59:58 -0400

> Jeffrey Skilling appeals the Enron decision. Article
> Security and compliance increasingly requires a global approach. Article
> H-P moves to boost e-discovery offering. Article
> Remorseful CFO gets jail time. Article
> Data centers still riding Sarbox wave. Article
> Sabanes-Oxley whistleblower protections apply to employees outside of U.S. Article
> Citigroup seeks more financial expertise for board. Article

And finally ... Finding work when times get tough. Article

ALSO NOTED: Spotlight On... Daughter of CEO uses corporate jet for school commute; Should audit committees have oversight over

Tue, 11 Sep 2007 06:59:58 -0400

Today's Spotlight... Corporate Scandal
Hmm. Daughter of CEO uses corporate jet for school commute. The recent trend has been away from such use by the CEO's friends and family. Critics assail the company. Article

News Watch:
> Should audit committees have oversight over credit raters? Article
> Deloitte takes a hard line mortgage company Novastar. Article
> New study: Sarbox whistleblowers prevail in just 3.6 percent of cases. Article
> Is the credit crunch really a crisis of character? Article
> Sarbox, one of many regs that affect the supply chain. Article
> Local recruiter: Demand for financial pros still high. Article
> Bayer says delisting from NYSE saves a lot. Article

Scandal Watch:
> International Rectifier fires CFO, puts CEO on a leave following discovery of fraud. Article
> Internal review discovers irregularity at Ace, no wrong-doing cited. Article

IT Watch:
> A new way to monitor file access? Release
> Westbrook Technologies, Sherpa to offer Fortis Email Management. Release
> SAP embraces best practices for GRC software. Article

And finally ... Fear and loathing for business travelers. Article

ALSO NOTED: Think you know a lot about Sarbanes-Oxley? Test yourself; Another big fair fund distribution;

Mon, 16 Jul 2007 20:01:38 -0400

> Think you know a lot about Sarbanes-Oxley? Test yourself. Take this quiz.

> Relief for small companies. I've said it before: Do not count on another small-company Sarbox extension. But the House has added an amendment to a bill that would do just that. I still doubt it will happen. Article

> The SEC has announced another fair fund distribution. This one, for $316 million, will got to investors in Time Warner. Total distributions now total $2 billion. Article

> New book (not free) on practical tips for Sarbox compliance. Release

> Tricky issues. Lawyers are grappling with discovery issues and personal email accounts. Article

> Survey: CFOs lack succession plans. Article

> More on AIM's plans to snag more U.S. small companies. Article

> Judge's ruling results in dropped charges in KPMG case. Article

> More on the need for an e-discovery action plan. Article

> Sarbanes-Oxley still looms large in the U.K. Article

> Another major breach of customer data. Article

> LogicalApps helps Qualcomm with financial reporting. Article

> Reference accounts: One way vendors sell Sarbox (and other) solutions. Article

And finally... Are you a frustrated achiever? Article

ALSO NOTED: Accounting and finance employees grow more pessimistic; Trend may be swinging back toward financial execs with broa

Mon, 09 Jul 2007 20:01:38 -0400

> Daniel Goelzer reappointed to PCAOB. Article

> Accounting and finance employees grow more pessimistic. Article

> Is it time for activity-based accounting? Article

> Some tips on database risk and compliance. Article

> Trend may be swinging back toward financial execs with broad skills. Article

> Another big breach of consumer data. Article

> Despites Sarbanes-Oxley, the IPO market has surged. Article

> Sarbox fuels growth and consolidation in e-discovery market. Autonomy and Zantaz in deal. Article

> Oracle and Wipro offer new managed service offering. Release

And finally ... Do you need a YouTube strategy? Article

Will AS5 finally ease the tense standoff?

Mon, 04 Jun 2007 20:01:39 -0400

There has been a fair amount of praise for the new AS5. The hope is that it clears the air a bit about audits and what they entail--and what they don't. So does this mean that the tense standoffs between managers and outside auditors are a thing of the past? Well, there is a lot of damage to repair. It got so bad that some executives did not even want to speak with the auditors for fear that it will raise a host of issues and lead to the discovery of more "deficient" controls. Even the auditors, who really were able to jack up their billables, are ready for calmer relationships. It does seem the auditors were out of control. By one account, a new hire meant that companies had to check and document that it checked the employee's signature; outline how it supervised the new employee onto the payroll; reconcile salary payments with bank records and so forth. The distrust will likely linger, even in this new era.

For more:
- here's an article from the Globe and Mail
- here's white paper from CCH

Big data breach at JPMorgan

Mon, 07 May 2007 20:01:39 -0400

We've discussed at length your customer data security obligations when it comes to customer data. Radio Shack's unfortunate event was both humiliating and costly. It never ceases to amaze me that companies, even big ones, are not more systematic about moving data. The latest example is JPMorgan. It announced recently that tapes of sensitive customer data, of its highest net worth customers no less, were lost last year. It has recently alerted 47,000 accounts in the Chicago area and advised holders to check for iffy activity. In a separate incident, a local union announced it found records in large trash bags outside some Chase branches. It posted video of the discovery on the Net. The union is trying to organize security employees at the bank. Make of that what you will. The point is that these sorts of breaches are a big no-no. This is a priority of the highest order.

For more:
- here's the union video