Rule Imc Records Management & Discovery Offering Q109 V2

© Rule Financial Ltd 2009. All rights reserved. Slide 1Commercial in confidence

Discovery

Prepared by Rule FinancialInformation Management

Q1 2009


Contents

The challenge of discovery Market activity A model for electronic discovery Discovery best practice Software vendor & consultancy landscape What do we find? How have we

responded? Key questions for Corporates Our service offerings Proposition: Stakeholder workshop About Us Contacts

“85% of all our new work is based on clients returning toRule”

How can we help?


The Challenge of Discovery

The volume of litigation is rising• Impending wave of litigation emerging from the

global turmoil in financial markets.

Corporates face ever-increasing demands when responding to each matter• New regulations result in burdensome discovery

processes, with heavy penalties for non-compliance.

Corporates are exposed to diverse international regulations.• The global market for litigation allows claimants to

bring matters in the jurisdiction which most favours them (most frequently the US)

Ensure that they are able to meet all regulatory and legal requirements (in potentially multiple jurisdictions)

Develop, deploy and enforce a defensible, repeatable process for discovery

Increase efficiency and manage the potentially escalating cost of discovery

Against this background, corporates need to:

Sources Fulbright and Jaworski

The Problem


Market Activity

Organisations : Exploring ways to tackle discovery obligations in-house.

Corporates have traditionally turned to one of a small number of outsourced discovery consultancy providers to meet their discovery requirements at high cost

Corporates want to invest in technology to reduce their dependence on outsourced discovery consultants.

Significant cost savings are to be made An immature software vendor market, large license fees and lack of a defined

process are barriers to be overcome.

Software vendors: Market remains fragmented

Niche technology businesses are investing heavily in new segments to offer an enterprise solution.

Innovative companies are exploring alternative ways of selling their software to clients, including pay-per-use software.

Expertise is required to distinguish the credible from the aspirational solution.

Legal firms: Seeking ways to encourage claimants to pursue litigation

Schemes such as third party funding and insurance schemes are being launched to give individuals and companies the confidence and ability to take matters to court.

On the other side of actions, legal firms, who traditionally have relationships with forensic service providers, are investigating in partnerships with software vendors to offer their clients lower discovery costs through the implementation of ‘straight through processes’.

“More and more enterprises are

looking to in source at least part of

the e-discovery function, Clients

report that the payback period for

an e-discovery investment is 3-6

months”- Gartner: ‘MarketScope for e-discovery software

product vendors 2008’


Electronic Discovery Reference Model

We follow the EDRM model (below) which represents the recommended process organisations should follow in response to legal / regulatory action being brought against them.

Upon notice of litigation or investigation, the organisation must identify all relevant custodians & information.

The custodians and their information should be placed under ‘Legal Hold’, wherein the information is preserved before being collected to a central repository.

All collected information is then analysed & processed using forensic technology so that only relevant information is kept.

The resulting relevant information is then used for case preparation.

PreservationProcessing

Analysis

Review

Collection

IdentificationRecordsManagement Production Presentation

Volume RelevanceRef: EDRM Project

New Matter


Discovery Best Practice

Company file plan Effective records

management policy Active policy

management• Email archiving• Automated

destructions• Rights management

Legal review tools: Information stored in

central repository Classification / tagging

of information Files exported to

matter management systems

Collected information categorised

Data culled by multiple search criteria

Data de-duplicated Reports on analysis

activities Review of content

processed

Effective logging of matters

Quick identification of relevant custodians & information

Automation of custodian notifications

Provision of process MI Auditable process Automatic escalation /

reminders

To meet timescale targets Defined, transparent and repeatable Auditable


Analysis

ReviewCollection



New Matter

Compliance

To meet timescale targets Defined, transparent and repeatable Auditable

High Return on Investment

Bringing expensive processes in-house Improved control of legal costs Reduced settlement costs


Vendor & Consultancy Landscape The market is immature, over-hyped, overcrowded and uncertain. Rapid functional consolidation is expected.

Functionality is confused and overlapping.

Few software vendors offer credibly complete solutions for eDiscovery, and those with aspirations are extremely costly

The use of technology is not an excuse for ignoring inadequate business processes

PSS Atlas

Orchestria

Zylab

Guidance

Summation

Autonomy, Oracle Stellent

Kroll, KPMG, E & Y, etc...


Analysis

ReviewCollection



New Matter

Discovery vendors & consultancies

Concordance (Lexis Nexis)


Most organisations have little idea of what content they have, where it resides and who owns it

The processes for coping with litigation are often undocumented and inconsistent.

Globalisation of trade results in cases being brought in the jurisdiction most favourable to the litigant. This is frequently the US, which has the most demanding discovery requirements

Global privacy laws create an additional complexity in identification & collection

We see technology as only part of the discovery process: operational excellence is central to ensuring your organisation is well placed to efficiently tackle its discovery obligations.• Corporations need to focus on their operating models within their

legal departments• Effort spent in integrating process with outside counsel will pay big

dividends• Local solutions need to consider international requirements

The discovery landscape is broad and littered with multiple vendors offering either generic solutions or localised functionality

The technology solutions market is immature

An effective strategy for discovery must be based on a clear understanding of an organisation’s pain points and requirements. This must be inclusive of people, process and technology

Large, upfront costs for software licenses can be a barrier for organisations wishing to tackle discovery in-house.

This leads to organisations outsourcing their discovery problems to costly forensic consultancies on a case-by-case basis.

We believe our clients should also consider working with discovery vendors on a pay-per-use basis, enabling them to benefit from market leading technology while not incurring the high costs incurred by outsourced forensic consultancies.

What Do We Find?

What do we find? Rule View


Key Questions for Corporates

Rule Financial helps its clients to answer these questions

How do you develop and enforce record retention

policies to meet discovery requirements?

How do you calculate whether it is worth

bringing your discovery problem in-house, giving

due consideration to both risk and cost?

How do you develop and implement a repeatable,

defensible process for managing your

employees and their data in response to litigation?

How do you decide whether to trust your employees to comply

with discovery policies or to invest in “active policy

management”?

How do you decide how best to invest in records management to enable

efficient compliant discovery?

How do you develop a business case to prioritise investment in

discovery?

How do you decide the best way to pay for

discovery technology? Pay-per-use or licenses?

How do you design and implement a straight through process for

discovery which links-in seamlessly with third

parties?

How do you estimate discovery costs up-front

in order to decide how to defend, or whether to

settle a matter?


Our Service Offerings

Rule Financial Service Offerings

Strategy & business case

Pay-per-use software - hold, collect and aggregate

Operational model design

Matter management systems

Component selection & integration

Content file plan

Requirements


Analysis

ReviewCollection



New Matter

Records Management systems


Proposition: Stakeholder Workshop

Recognise and adopt best practice

Create an operating model that spans the corporation and key partners (most notably legal counsel)

Ensure that your process is compliant, efficient and scalable in size and scope to cover the full range of actions, from small local to large global

Our consultants can meet with key stakeholders from your organisation in an initial discovery requirements workshop to: Review your litigation / discovery

processes Establish an agreed discovery

landscape Match your current people,

processes and technology against the discovery landscape

Identify next steps: both short term fixes and strategic initiatives

We can help you to... What’s next?


About Us

For over 11 years Rule Financial’s specialists have been working alongside their counterparts at the world’s top financial institutions, helping to lower costs, improve productivity and deliver innovative solutions.

Rule Financial is a Microsoft Certified Partner and a member of the ‘Sunday Times Tech Track 100’ fastest growing technology companies for 2008 in the UK

Our Information Management Consultancy (IMC) has a wealth of experience from maximising physical storage needs through to information worker solutions delivered by our in-house Microsoft SharePoint team.

We are particularly keen to align business analysis and strategic visioning to actual solution delivery and measurable success.

Our diverse portfolio of clients includes; • Investment Banks• Hedge Funds• Professional Services• Legal Practitioners• Media• Engineering• Government & Public Sector

Rule Financial Rule - IMC


Contacts

Mike LinesPartner: Information [email protected]: +44 (0)7826946177

Find us online at:http://www.rulefinancial.com

AddressRule FinancialIMC101 MoorgateLondon EC2M 6SLTel: +44 (0)20 7826 4444

Source: Google Maps

mailto:[email protected]

http://www.rulefinancial.com/

Rule Imc Records Management & Discovery Offering Q109 V2

Business

discovery requirements

discovery obligations

ediscovery function

ediscovery investment

collected information

clients lower discovery

onlyrelevant information

legal requirements