Survey Shows Trade Secrets Are At Risk
More than half of US corporations are ill-equipped to protect their trade secrets, and do not have an established protocol to ensure their protection, according to a just-released survey of 200 top trial lawyers by PricewaterhouseCoopers and the American Bar Association.
Survey respondents estimated that 40-70% of company records are kept in electronic form, but the security and accessability to that information is questionable. With statistics running as high as 60% of networks whose security has been breached, a staggering amount of corporate data is left vulnerable.
The use of electronic information in litigation was also discussed in the survey. With an almost-unanimous response that technology will be used more frequently in the discovery process, a full 83% of corporations do not have any policies or procedures for handling electronic discovery requests.
Organizations and clients need to be educated about the issues that this survey raises, and established procedures for dealing with both the protection of trade secrets as well as handling of electronic discovery requests must be implemented.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.