Pillar 6 of 6
Systems, Records & Digital Risk
Is your business ready for a breach, an audit, or a sale?
When something goes wrong — a lawsuit, an audit, a data breach, or a potential acquisition — the state of your records tells the whole story. Either you're ready, or you're scrambling.
Most businesses don't know which one they are until it's too late to fix it.
The Blind Spot
Digital risk is the fastest-growing area of legal exposure for small and mid-sized businesses. It's not just about hackers.
It's about disorganized records that can't support your case in a dispute. It's about a data breach with no response plan. It's about privacy laws you didn't know applied to your business. And it's about a potential buyer walking away because your records were a mess.
The good news: this is one of the most fixable pillars. A few focused hours of organization and planning can dramatically reduce your exposure.
Real Scenario
Real scenario: A founder spent years building a profitable software company. When a buyer's due diligence team came in, they found inconsistent IP ownership records, no formal data security policy, outdated website terms of use, and contractor agreements with unclear IP assignment clauses. The deal was delayed by four months and the final purchase price was reduced by $400,000—all because the records didn't match the business the founder had actually built.
What This Pillar Covers
Pillar 6 examines how your business manages information, protects data, and maintains the records it would need in a crisis, an audit, or a sale. We look at:
Document retention policy: Do you know what to keep and for how long?
Data security practices: Do you have written policies and access controls in place?
Incident response plan: Do you know what to do if there's a breach?
Privacy compliance: Are you complying with federal and applicable state privacy laws?
Intellectual property protection: Are your trademarks registered and your trade secrets protected?
Employee IP assignment: Do you own the work your employees and contractors create?
Website legal compliance: Are your terms of use and privacy policy current?
Electronic contracts: Are your digital agreements actually enforceable?
Due diligence readiness: If a buyer or investor came in tomorrow, would your records hold up?
What You Get From This Assessment
WITHOUT this assessment
• No data breach plan; reacting in real-time when every minute matters
• Disorganized records that can't support your case in a dispute
• IP you created but may not legally own
• A potential deal or audit derailed by a records problem you could have fixed
WITH a clean Pillar 1
• A documented incident response plan so you respond—don't react
• Organized records that support your business in any scenario
• Clear IP ownership; everything you built is legally yours
• Due diligence readiness; growth, investment, or a sale won't catch you off guard
Watch the Video
Eric Jeppson explains why digital and records risk is the most underestimated area of legal exposure and the simple steps that can get your business ready for anything.
Your Next Step
The Pillar 6 Checklist walks you through your systems, records, and digital risk step by step, and questions to ask your lawyer. Each item has a plain-English explanation and a concrete action you can take right now. Start building the records your business deserves.
Get the Pillar 6 Checklist
Know exactly where you stand on Systems, Records & Digital Risk. The Pillar 6 Checklist walks you through every critical item, with plain-English explanations, real-world scenarios, and action steps you can take today.
Or book a free 15-minute Legal Health Review → jeppsonlaw.com