Risk Management Consulting, LLC

A new article at CFO Magazine discusses the issue of smartphone use by employees. Employees using their personal mobile devices to store and transmit company data represents a growing legal risk.

If a company is sued or investigated, it could be required as part of the discovery process to provide all electronically stored information relevant to the case. If relevant data is stored on employees' personal devices, the company may be unable to fully comply with an order to produce if it is unaware of all locations that harbor the data being sought. While a company may have an internal policy that company information belongs to the company wherever it is located, the law is not yet settled as to whether the company can compel employees to hand over personal devices.