Businesses produce a wide range of data and documents related to operations, transactions, vendors, customers, and more. This information is important to the daily operation of a company and often contains sensitive information that should be kept confidential. Poor records management affects an organization’s efficiency and workflow, but the hidden risks can be even more damaging.
Poorly managed records can create legal liabilities and can also cause headaches with vendors, clients, and investors, hurting your bottom line. The stakes are even higher if you work with sensitive information like medical or legal records.
Why Records Management Matters
Records management revolves around preserving your document records and keeping them secure and organized.
In the short term, this supports efficient operations by ensuring that employees have access to the data they need to do their jobs. In the long term, it contributes to business continuity, supports compliance with industry rules and regulations, and provides evidence to support your claims in the event of liability issues.
When records are not well managed — when data is disorganized or even missing — you may face several hidden risks that could harm your business.
Main Risks of Poor Records Management
One of the most common poor records management examples is disorganized filing processes, such as stacking files in a bin rather than filing them alphabetically or chronologically. Some businesses have no processes at all, leading to records being lost or even tossed in the trash.
Even businesses that file records properly may not have a backup system, which could become problematic. A lack of planning, organization, and oversight could lead to negative outcomes like:
- Data loss and inaccessible information
- Security breaches and data theft
- Legal and regulatory noncompliance
- Reduced operational efficiency
- Damaged reputation and loss of client trust
- Increased costs and financial losses
Data breaches are a very real threat not only to businesses but also to their customers. In 2023, it was estimated that over 3,000 data breaches occurred, impacting over 353 million individuals.
The consequences of these breaches include data loss due to ransomware and data theft that impact customers. They also include long-term problems like a tarnished reputation that could cost you current and future customers. You may also have to pay fines for failing to comply with regulations, and you could even face lawsuits.
In short, poorly managed records can result in significant damage to your business.
The Benefits of Strong Records Management Practices
Implementing long-term solutions for digital and physical records management will protect your business and your customers. These solutions should include both in-house policies and systems as well as off-site solutions for long-term storage, backups, and data destruction, when necessary.
A vital records document management system can increase efficiency by ensuring that data is accessible and easy to find. When records are properly stored and secured, you can track and manage compliance requirements more effectively and work to lower the risk of breaches, data theft, and data loss.
Safeguard Your Business by Prioritizing Records Management
Developing a records management program can help you avoid hidden risks that result in legal issues or lead to fewer customers, lower profits, and a damaged reputation. If you’re not sure how to safeguard your business in this area, it pays to work with professionals who have expertise in proper records management.
The process starts with assessing your current system to pinpoint problem areas and develop policies and procedures that tighten up efficiency and security. From there, you’ll explore long-term solutions for archiving that include secure, climate-controlled records storage and complementary services like scanning and data destruction.
FAQ
What Is a Digital & Electronic Records Storage System?
A digital and electronic records storage system is a type of software designed to facilitate data management and organization. Whether you create digital documents or scan physical records, you can easily categorize them for quick retrieval and safe disposal.
What Are the Negative Effects of Poor Record Management?
Poor records management can be very costly. Essential data could be lost or stolen, which can create liability and compliance issues, cost you customers, impact your profits, and damage your reputation.
What Is the Best Fireproof Document Storage?
The best way to protect documents from harmful elements like fire, humidity, and pests is by working with a reputable document storage company that has protective measures in place to address a multitude of risks.
Why Choose Armstrong Archives for Document Storage?
Armstrong Archives ensures your sensitive records are handled with care, from pickup to secure physical and digital document storage to data destruction, including certificates of destruction for compliance purposes.
Safe, secure document records management is the best way to improve efficiency within your organization and reduce the risk of issues like data loss, theft, and regulatory noncompliance.
If you’re looking for long-term data storage and management solutions, contact the records management professionals at Armstrong Archives today.