United States: Managing The Risks Of Bring Your Own Device (Electronic Discovery & Information Governance - Tip of the Month)

Keywords: BYOD, compliance, procedures, personal mobile devices

Scenario:

A multinational financial institution has decided to implement a Bring Your Own Device (BYOD) program due to increasing demand from business personnel and a desire to reduce IT costs. The General Counsel's Office is asked whether there are any legal, regulatory or compliance issues that the organization needs to consider when implementing a BYOD program and developing the policies and procedures governing BYOD.

What is BYOD?

BYOD refers to the policy of allowing employees to use their personal mobile devices to access their employer's information systems and applications for business purposes. In recent years, there has been a fundamental shift in the way people understand and interact with electronic information. First, the ability of employees to access information at any time and from any location has become essential to most business operations. Second, the technology used to access that information has become a matter of personal choice; no longer are employees satisfied with acquiescing to their employer's choice of technology. Instead, employees expect to be able to work with the device of their choice and dislike the inconvenience of maintaining separate mobile devices for business and personal use. And not only are employers largely powerless to stem the tide of this trend, but many employers appreciate the cost savings and flexibility that a BYOD program brings to the organization.

The Risks of BYOD

As with any technology, there are risks associated with implementing a BYOD program. There are legal risks, such as the ability to access information responsive to a document requests for preservation or production; there are regulatory risks associated with information on those devices that may be subject to regulatory retention and supervision requirements; there are information security risks associated with lost or stolen devices, as well as many different devices having access to the organization's networks; and there are data privacy risks associated with the mix of personal information with business information on one device. The question for any organization is how to best mitigate and balance these risks in light of the business demand for BYOD flexibility.

BYOD represents a significant change in the way organizations manage the risks associated with information. Traditionally, an organization's approach was to centralize the storage and retention of that information so that the organization had ultimate control over its distribution, management and retention. BYOD, however, undermines that basic approach. Organizations are now dealing with decentralized data sources where the organization has little operational control over storage, management and retention. Instead, many organizations find themselves almost entirely dependent on policies, and their employees' compliance with such policies, to manage the considerable risks associated with electronic data.

Consider the use of text messaging in a BYOD program. With a organization-owned device, the organization has the option of centralizing control of its employees' text messaging by disabling text or instant messaging capabilities on the device or capturing such messages for business purposes on the organization's centralized infrastructure. With a BYOD program, however, an organization loses its ability to easily block or capture business-related text messages, and is forced to rely more heavily on employee participation and compliance with policies to manage risk.

Tips for Managing the Risks of BYOD

Because an employee's use of his or her personal device is largely outside of the employer's control, critical components of any BYOD program include a clear, concise policy that is developed with the input of all the relevant stakeholders, together with audit procedures that validate and ensure compliance with that policy. When developing and implementing those policies and procedures, there are a number of issues the organization may want to consider.

  • Involve all Relevant Stakeholders. BYOD implicates many aspects of the organization's operations, and all of those stakeholders should have input into the policies and procedures governing BYOD Those relevant stakeholders may include personnel from the Legal, IT, Human Resources, Information Security, Compliance and Business departments.
  • Authorized BYOD Users. Careful consideration should be given to which employees the organization will permit to participate in a BYOD program and whether special procedures are needed for certain types of employees participating in BYOD. For example, because of retention and supervision requirements, the risks may be higher for regulated employees participating in a BYOD program than for non-regulated employees. And the organization's need and ability to access information on an individual's personal device may raise data protection concerns for non-US employees in certain jurisdictions. The organization should consider whether and how to adjust its policies to address high-risk employees, and whether special training, security or audit procedures are needed.
  • Uses of the Device. When developing policies and procedures relating to BYOD, consider the types of applications that employees will be authorized to use on the devices for business purposes, as well as any restrictions on the use of those applications. This includes the type of information that may be exchanged or distributed using the application, the ability to ensure data security, the ability or need for the organization to capture the information exchanged through the application on its own systems and the ability to quickly access, preserve, retrieve or delete data stored on the device itself. Employees should be provided with clear and specific guidance on the appropriate use of authorized applications, as well as uses that are prohibited.
  • Ownership of the Data. Most organizations have data retention policies or electronic communication policies notifying all employees that all data on organization's systems belongs to the organization and is subject to monitoring or use by the organization. An organization implementing a BYOD program should clearly convey to participating employees the organization's policy regarding ownership of data on devices that are part of a BYOD program. For example, the organization may have a policy that all business-related data on a BYOD program belongs to the organization (regardless of where on the device that data is stored).
  • Access to the Device. The organization's ability to access information on an employee's personal device as part of BYOD program is critical to the organization's ability to meet its legal, regulatory and compliance obligations. The organization should consider the extent and nature of such access, including whether: (i) remote access to data on the device is needed for collection or supervision, (ii) the organization may have to take possession of the physical device under certain circumstances and (iii) the organization wants the ability to remotely delete information from a lost or stolen device, or from a device belonging to a former employee.
  • Compliance & Audit Procedures. Given the challenges of monitoring and controlling the data on devices in a BYOD program, organizations should consider the need for specialized and enhanced training and audit procedures. Specialized training on the proper use of authorized applications may help to minimize confusion and inadvertent user error. Enhanced audit procedures, such as signed acknowledgements of the policy, periodic certifications of compliance or random testing for compliance, should also be considered. Incorporating these steps as part of a BYOD program provides additional assurance of compliance and strengthens the defensibility of the overall program.

Visit us at mayerbrown.com

Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2014. The Mayer Brown Practices. All rights reserved.

This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Similar Articles
Relevancy Powered by MondaqAI
 
In association with
Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions