The Five Risks of Poor Records Management
When it comes to records and information management (RIM), there are several causes of poor records management practices and risks associated with not keeping your RIM program up to date. Overlooking or completely ignoring these risks could lead to serious consequences, such as over-retention, data loss, or unauthorized access.
If you’ve been meaning to take steps to improve your information management initiatives, but haven’t quite prioritized it yet, or you are not quite sure where to start, this blog provides a few pointers on where you may want to begin. Below are five areas to focus your modernization efforts so outdated records and information management practices do not face the harmful consequences of poor record keeping.
So, what are the causes of poor record keeping? The first risk you may be taking focuses on ensuring quality. If you’re not being diligent about records management protocols, this apathy could become one of the causes of poor records management practices. You’ve probably heard the old adage, “Garbage In, Garbage Out”? This certainly applies here. Good records management begins with good information capture and filing, especially in today’s fast-paced, document-filled world. If you’re not structured in the data you record, its accuracy, storage locations, and versioning controls, your entire system can quickly descend into chaos from the effects of poor record keeping.
With the amount of information being created daily, this risk is all too easy to fall victim to. In fact, 26% of employees have reported creating a work document that they later discovered already existed.
Without strong records management, even your most reliable workers can expose your organization to legal and compliance risks by unintentionally mishandling documents. For example, have you ever found an important form on the copy machine at the office? Or gave files to a co-worker without first checking their permissions? Or maybe you know someone who has thrown away a document or record that needed to be either retained or securely shredded? These errors can put you and your organization at risk while implementing a solid RIM program opens opportunities for your organization to grow.
Whether you manage medical records, legal records, or other forms of personal and financial information, a solid document retention policy is key to avoiding the consequences of poor record keeping. Without it, you risk being fined, especially if you destroy records too soon or can’t produce them during an audit. You could also incur more risk than you should in legal discovery or an at-fault breach by keeping records beyond their retention dates. One example of this happened a few years ago to JPMorgan Chase & Co when the SEC fined them $125 million due to widespread recordkeeping failures. That’s an expensive and preventable lesson to have to learn for poor records management.
Natural disasters, floods, and fires can wreak havoc on a business, destroying improperly stored documents forever. Critical and irreplaceable records should be stored in climate-controlled underground vaults and in professional records centers in locations chosen for minimized environmental risks. Be sure the offsite storage provider you choose to work with has physical access and security controls in place and fire suppression technology as well.
Additionally, having a disaster recovery plan in place can save your company from risks, including financial loss, compliance violations, security threats, and operational issues. The Federal Alliance for Safe Homes (FLASH) estimates that 75% of businesses without a business continuity plan fail within three years of a disaster.
Poor record-keeping can negatively impact organizations by decreasing productivity when employees are forced to track down the information they need to complete tasks. All this time and energy adds up to real costs that hit your bottom line. In fact, employees from businesses of all sizes claim to spend as much as 25% of their workweek hunting down documents and information they need to do their jobs.
Don’t let these five risks listed above cause your RIM program and operations to spiral into chaos. By focusing on quality information capture, ensuring compliance, protecting against disasters, and improving efficiency across the information lifecycle, you can safeguard your company against the harmful effects of poor record keeping and set a strong foundation for future growth and success.
Assess the causes of poor records management practices, establish a plan, regain control, mitigate risk, and improve efficiencies with help from Access. Our offsite storage solutions are designed to keep your documents secure — without hindering accessibility, and our records retention scheduling solution, Virgo, can help you automate your scheduling processes while providing world-class client service. Contact us today for more information or a specialized solution.
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