02 November 2021

Decisions based on Data

Much has been said about Big Data and modern tools for extracting indicators, however a volume of data only makes sense if treated and if decisions are based on reliable statistics.

In this hand, a few years ago most of the legal departments of companies and law firms began to play a more strategic role in both the advisory and litigation areas.

Statistics arising from consistent data are essential in companies aligned with the law and the so-called 4.0 management, which can be essential to put the legal team's time in a position of deserved protagonism, reducing erroneous feeling of the other departments concerned as an area that generates expenses.

In contrast, the legal department usually manages the liabilities generated by other areas or business units and is an important player within the corporate structure.

The legal advisory (preventive) of companies must also make use of data analysis based on relevant information. The study, for example, reveal or check the recurrent problems that generate actions, the most impacted business areas and other sensitive information, allowing for the necessary adjustment, the recommendation of strategies and the reversal of problems in a timely manner in order to avoid definitely new lawsuits.

In case, volume portfolios, it is a real challenge to keep information up to date and data consolidation, but it is possible to clean up the process bases and use methods to keep them permanently up to date, either with the use of artificial intelligence or with the manual entry of information into ERP systems.


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“It is essential that the office and the client jointly define procedures and criteria for valuing contingencies and for correctly filling in the control systems. Data only have any value when filled in carefully and continuously”, says Rodrigo Gonzalez, partner at EGS Advogados.

In this sense, Denize Battaglini, Legal and Institutional Relations Superintendent of CCDI - Camargo Corrêa Desenvolvimento Imobiliário (property development), a client company of EGS Advogados, corroborates with Gonzalez and states that the subsidies generated by the offices that represent the company in lawsuits help in decision-making.

In addition, CCDI sometimes opts for legal settlements taking into account data analysis and the company's precautionary measures are based on generated statistics to avoid further lawsuits.

Fabio Floh, CEO of Ehts, believes that the legal market has matured in recent years and adhered to economic and statistical analysis and developed a lot.

Ehts is a lawtech that has innovative and technological solutions for the analysis of accounting, economic, behavioral, geographic, social data, among others.

For Floh, it is essential to understand the client's business, to think outside the box and to know the legal area in depth. In order to reduce costs in operations, for example, the metrics (statistical analysis and provisioning of actions) need to be correct. The work requires a process of continuous improvement that is not limited to technology.

“More than winning a lawsuit, it is necessary to have predictability of the companies' cash disbursement and, for that, the data must be reliable”, he says.

In Brazil, there are other lawtechs and legaltechs that provide automation tools such as the verification in the courts of the status of cases (if active or closed), of the procedural phases and if there are pending issues such as raising court permits, tax payments etc.

Basically there are 3 types of interesting statistical analysis that can be applied to process portfolio management: Descriptive, predictive and prescriptive analysis.

“The data alone does not inform anything, the insights from them make the difference”, says Nilton Taveira, Head of Innovation and CDO at EGS Advogados.

Descriptive Analysis uses parameters from the past and may contain variables such as the triggering events of the actions, business areas involved in legal proceedings, amounts provisioned or saved in agreements, districts in which the actions are processed, among other relevant data.

Predictive Analysis focuses on the possibility of evaluating trends in a portfolio of processes and more assertiveness in the provisioning of the amounts involved, which also allows the finance department to prepare for future financial disbursements with some predictability.

Prescriptive Analytics uses descriptive and predictive analytics to generate recommendations for decisions to be taken according to the company's scenario or in line with best market practices.

In addition, in Brazil there are lawtechs and legaltechs that provide automation tools such as verification in the courts of the status of cases (if active or closed), phases and whether there are pending issues such as raising court permits, tax collections and whether they are liable of conclusion.

Thefore, consistent data provide subsidies for the effective management of process portfolios and allow decision-making that best suits the objectives of companies or law firms.

Legal departments and law firm managers have a lot to gain from the strong trend of innovation and need to definitely enter in the digital era.

The time and money saved with effective management can be invested in activities that generate value to business and focused on the internal and external customer. Data, if used well, can save costs and litigation.

For Battaglini, in addition to the lawyer being technically consistent, he needs to constantly update himself and use the best tools available. It is also necessary to understand the core business of the industry in which it operates. In her case, civil construction.

Forgoing data analysis is not an option when the market is competitive and quality becomes a differential. The only way to acquire skills that really add some value is through studying, updating and knowing the market very well.

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