David Wallack, General Counsel and Director of NightOwl Discovery, discussed the increasing risk that comes with maintaining too much data and the importance of information-lifecycle governance during his presentation at the 2014 Chief Legal Officer Leadership Forum in Chicago on Sept. 17. In his presentation, Wallack noted general counsels can leverage big data in a number of ways. According to Wallack, preserving data can be difficult, but general counsels need to understand exactly when they must hold onto data. In addition, Wallack noted general counsels need to learn about big data so they can fully leverage it and bolster their efficiency. By doing so, Wallack pointed out general counsels could avoid a variety of problems down the line: “It is imperative that the legal departments of organizations are aware of big data because companies are going to increasingly rise and fall based upon their ability to analyze and drive value out of it.” Wallack also noted discovery matters are excellent benchmarks of record-retention policies. With information-governance lifecycles, Wallack said legal departments can effectively store and manage their data: “You can reduce costs by transferring eroding data that’s actually losing context and increasing in risk over time to cheaper-tiered storage methods, while eliminating data that has no value and has lost all of its context. At the same time, you can apply analytics and predictive technologies on incoming data to help categorize that data as it floods in.” - See more at: http://www.argylejournal.com/general-counsel/2014-chief-legal-officer-leadership-forum-david-wallack-general-counsel-director-nightowl-discovery/#sthash.EQOqTM52.dpuf

1. Over-Preservation Myths &
Information Economics
© 2014 NightOwl Discovery
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Argyle Conference
September 17, 2014

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Why do we preserve data?
Retain Data
Subject to
Legal Hold
Regulatory
Requirement
Business
Value

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Your data breakdown.
Regulatory 5%
Legal Hold 1%
Business Value
25%

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What’s in the 69%
Personally identifiable information
HIPPA violations
Financial information
Valuable, but redundant data
Useless email

5. What will it cost if we don’t have it, but we’re required to keep it?
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6. What will it cost if we have it, but we’re not required to
keep it to begin with?
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7. The problem: your data is growing…exponentially.
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4 terabytes
per site/per
day of video
BIG DATA
15 pedabytes of
new information
created daily
12 terabytes of
tweets
5 million financial
trades per second
500 million call
records daily

8. Information value erodes over time, risk does not.
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Risk-to-
Value
Gap
Cost-to-
Value Gap
Ris
k
Cos
t
Valu
e

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Quantification of risk – the tipping point.
Risk not been reduced by keeping all data – it has increased materially. The
exposure and cost to produce vintage data has over-taken the risks of
sanctions and settlements.
0.05% of vintage
data is $13B in
eDiscovery cost
exposure – a
material financial
risk.

10. Has the mission to keep 1% made legal departments the primary
drivers of organizational risk?
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The canonical 3 v’s of big data.
First published in 2001 by Doug Laney of the Meta Group.
Described these
as “definitional
qualities” specific
to Big Data.
Information
lifecycle
governance can
directly improve
the ability to
handle these
challenges.
Volume
Big
Data
Velocity Variety

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Clear benefits for all ILG stakeholders.
Together ILG and Big Data creates value for all stakeholders:
Manage data volumes
Automate record declaration
Faster, more accurate analysis despite variety and silos
Compensate for veracity
Improve derived value

13. © 2014 NightOwl Discovery
Thank you.
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For additional info, please contact:
David Wallack
General Counsel and Director
dwallack@nightowldiscovery.com
612-337-0448