Lowering Regulatory Risk

Lowering Regulatory Risk, Another Use Case for eDiscovery (and AI)?: eDiscovery Trends

Maybe I should add this use case to this year’s State of the Industry Report survey? Amit Dungarani of Casepoint identifies how eDiscovery solutions can help in lowering regulatory risk.

As reported in his article on Legaltech® News (Avoiding Another SVB: Lowering Regulatory Risk With eDiscovery Solutions (and AI-Assisted Tools), available here), Amit discusses how the fall of Silicon Valley Bank (SVB) and Signature Bank in March led to fears of broader implications for the banking industry. Those fears were realized in May when government regulators took drastic measures to curtail a two-month crisis by seizing and selling off First Republic Bank.

When SVB failed, regulatory bodies were well aware of the bank’s 31 open supervisory findings referring to instances where regulators had flagged problems and urgent issues for remediation—including having enough cash on hand in the event of trouble. However, the bank didn’t address its vulnerabilities, and was ultimately rated deficient for governance and controls.


Because SVB failed to comply with regulatory requirements, its legal team and top executives are vulnerable to litigation from shareholders and creditors for failing to disclose recent spikes in the bank’s risk profile. The severity of that litigation hinges on what they knew and how reckless they were regarding oversight or making false or misleading statements. One lesson from these disastrous outcomes is clear: Regulators need to improve the efficacy of their oversight and timeliness of remediation.

Amit proceeds to discuss how banks should be managing regulatory compliance on a continuous basis and several methods of risk detection, mitigation and remediation. How can eDiscovery solutions (with AI-assisted features) help in lowering regulatory risk? Check out his article here to find out!

So, what do you think? Do you use eDiscovery solutions to help manage risk within the organization? Please share any comments you might have or if you’d like to know more about a particular topic.

BTW, I’m on my first real vacation in three years (seriously! – this post was pre-scheduled!) so I may be slow to respond to comments here and on social media. 🙂


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Disclaimer: The views represented herein are exclusively the views of the author, and do not necessarily represent the views held by my employer, my partners or my clients. eDiscovery Today is made available solely for educational purposes to provide general information about general eDiscovery principles and not to provide specific legal advice applicable to any particular circumstance. eDiscovery Today should not be used as a substitute for competent legal advice from a lawyer you have retained and who has agreed to represent you.

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