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Document magazine has a very informative article on the risks of using electronic signatures. The article is written by Gregory T. Casamento and Patrick J. Hatfield from Lcoke Lord Bissell & Liddel LLP.
I like the article because it does a good job of addressing a common mistake that businesses or organizations make when considering or creating an electronic signature solution. That mistake is to view the requirements for an electronic signature solution solely as technical, to be solved by the IT department. Ignoring the other requirements, or risks as identified in the article may result in a electronic signatures that are not enforceable.
Companies like American Express and Dillards have learned the hard way that their internally built systems did not stand up in court, although technically they did have electronic signatures.
The six risks identified are Authentication, Repudiation, Compliance, Admissibility, Adoption and Relative. Check back in the coming days as we go into how to mitigate each of these risks.
