HR Professional - February/March 2009 - (Page 46) S T R AT E GY B Y P E T E R VA K O F ELECTRONIC INFORMATION MANAGEMENT IMPACTS THE HR FUNCTION H R professionals play a critical role in protecting an organization from litigation or reputational threats by being aware of the employeerelated situations that give rise to the need for electronic discovery (e-discovery), the process by which electronic data is sought, located, secured and searched. l The reasons that e-discovery might be n necessary are complex but common instances i include the following examples. If there is suspicion of data theft, by using e-discovery the company can find out if there is any evidence to suggest that the staff member might have taken with them any of the company’s critical intellectual property. This is generally done through search and review of documents, computer logs and communications (e.g., e-mail, instant messaging or voice mail). Employee threat and resignation Sometimes, when an employee is dismissed w with cause they may not agree and threaten to sue for wrongful dismissal. By leveraging the methodologies and technology behind e e-discovery, a company can uncover and use e electronically saved information to support their c case. It can also assist in understanding why this person had underperformed. Perhaps too m much personal time was spent using the Internet, i in which case, the company policies need to be revisited to remedy other employees potentially doing the same. A similar situation could occur if an employee resigns and subsequently sues the company for c constructive dismissal (e.g., sexual harassment o or bullying). Being able to access the preserved i information can help prove the case one way or the other. Information must be kept in a secure l location under strict access control—one has to b be able to testify as to who had or could have h had access to data while in their possession. G Generally, such information is secured and m maintained by company’s in-house counsel or their corporate security officer. Otherwise, HR c can maintain it. Loss of corporate data H HR professionals need to be alert for any i indication that may suggest a departing employee w will be leaving to compete with the company— p perhaps at a competitor or by setting up their o own business. Fraud HR professionals should take into consideration the organizational level of the staff member who has chosen to leave the company and the nature of company information they may have had access to. Companies should have appropriate policies and procedures in place to preserve and maintain an employee’s computer and data for a certain period of time (depending on their level of responsibilities and access to company’s assets and intellectual property) to facilitate subsequent investigation and disclosure, if required. Reduce the risk of data loss Generally, companies with appropriate document retention policy and e-discovery protocol, such as the formation of an e-discovery team and establishment of appropriate procedures to respond to situations requiring e-discovery, are more equipped to deal with the above instances and reduce the risk of loss of corporate data, theft of intellectual properties and/or violation of relevant personal data privacy laws. Those employers who do take the necessary precautions will avoid costly litigations and/or regulatory investigations. Managing electronic information is more important than ever before. If this information is not managed properly, it can be a gold mine for your opponents in litigation, but a minefield for your organization. Peter Vakof is a CA-designated specialist in investigative and forensic accounting, a Certified Fraud Examiner and a Certified Information Systems Security Professional, and established PricewaterhouseCoopers’ Canadian Forensic Technology Solutions (FTS) practice. 46 F e b r u a r y / M a r c h 2 0 0 9 HR P ROF ES SI O N AL
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