The COVID-19 pandemic of 2019 marked a global turning point in digital transformation, pushing companies to accelerate the digitisation of their operations. While some organisations have their technical departments spearheading this transformation, others delegate this crucial task to their legal departments, which typically oversee compliance issues as well.
This shift from paper to digital requires Chief Legal Officers (CLOs) to ensure that the digitisation of transactions and processes enhance productivity while also safeguard the security, traceability, and compliance of these processes amidst continually evolving regulations.
Summary
Balancing simplicity, cost, and risk
One of the main challenges for CLOs in evidence management is achieving an optimal balance between legal risk, implementation feasibility, and cost-efficiency. In a digital environment, a legal director must determine what level of the probative value they need for their evidence, weighing the associated risks against the complexity of its implementation.
Over the years we have observed situations where legal departments resort to basic, in-house solutions like screenshots or Excel spreadsheets. Although these methods may suffice in scenarios where they are traditionally accepted by opposing parties or courts, they often fall short under more stringent circumstances. In highly regulated industries, such as construction or gaming, these informal methods may fail to meet required legal standards or convince judicial authorities, jeopardising the admissibility of the evidence, and by extension, the case itself.
Consequently, it is imperative for legal departments to approach evidence management with diligence, potentially consulting external legal experts or Trusted Service Providers to assess the evidentiary needs and implement a system tailored to the stakes involved.
Optimising evidence management: sector-specific strategies
The requirement for high-value digital proofs varies significantly across industries, with the repercussions of non-compliance varying just as broadly. Highlighted below are strategies employed by Chief Legal Officers in specific sectors to address the challenges of digital transformation and establish the right level of security to meet legal requirements.
Banking sector
In banking, CLOs ensure compliance with a wide range of regulatory requirements aimed at mitigating risks such as fraud and money laundering. Processes like KYC, contract management, loan processing, and transaction recording necessitate meticulous documentation and archiving, enabling regulatory bodies to verify the integrity and authenticity of such documents without dispute. Failure to comply can attract severe penalties.
To secure the admissibility of the evidence, CLOs are increasingly relying on electronic signatures and qualified electronic archiving to preserve the probative value of documents over time.
Healthcare sector
The healthcare sector is highly regulated, with strict requirements surrounding the protection of sensitive patient information. CLOs are tasked with ensuring that medical records, consent forms, and other legal documents are compliant with regulations such as the General Data Protection Regulation (GDPR).
In complex disputes, particularly those involving breached patient confidentiality or challenges to a physician’s integrity, rudimentary methods like computer logs or screenshots might not provide adequate legal cover. Integrating qualified electronic timestamping can create an immutable record of data access or medical services rendered, enhancing the legal safeguarding for healthcare providers.
Manufacturing industry
The industrial sector is progressively transitioning from paper-based systems to digital solutions to enhance efficiency and competitiveness. A concrete example of this transformation is the digitisation of order and delivery forms. Hundreds of thousands of paper orders are issued daily to transport goods and materials from one location to another. These orders must be presented at various checkpoints, tracked, and stored to serve as proof in case of disputes.
While moving from paper to digital seems an obvious improvement for the industry, the multitude of stakeholders and contact points makes implementation technically complex. Furthermore, legal departments must ensure that digitisation complies with industry standards, creates an acceptable chain of evidence, and ensures that stakeholders can access the evidence with integrity. It is therefore essential to work with a qualified provider who can offer a solution adapted to the required level of proof.
How Evidency supports legal departments in their digital transformation
Evidency, an eIDAS-qualified trusted service provider (TSP), offers comprehensive solutions including timestamping, electronic seal, certified record of online violations, and electronic archiving.
These tools are designed to equip legal departments with the necessary resources to effectively manage their digital transformation initiatives:
Respect of the 3 pillars of evidence: authenticity, integrity and accessibility
Evidency’s eIDAS-qualified timestamping solution provides a verifiable date for documents, ensuring their authenticity and integrity in judicial proceedings. The electronic seal is the equivalent of a company stamp and serves as a verifiable indicator of a document’s origin, critical for maintaining its legal validity.
Similarly, the electronic seal acts like a company stamp and ensures that the sealed document indeed originates from the sender it is supposed to come from. This is essential for maintaining the authenticity of legal documents and ensuring their admissibility in court.
Seamless integration with technical teams
Legal departments must often collaborate with IT to implement solutions that meet traceability and evidence management needs without disrupting existing workflows. Evidency’s system integrates effortlessly via simple REST API calls, allowing legal teams to manage digital evidence efficiently without significant resource allocation.
In conclusion
As digital transformation accelerates, CLOs are under increasing pressure to modernise legal processes while balancing risk and cost. Evidency’s tools provide a streamlined, compliant method for generating irrefutable digital evidence, aiding CLOs across finance, healthcare, and industrial sectors to ensure their digital documents are protected, valid, and legally recognised by courts and regulators.
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