Issue 1 2011 > Records Management in a Recovering Recession
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Records Management in a Recovering Recession
Written by:
Martin Budd
Director of Business Development
UK & Ireland
London, UK
Email: mbudd@crownrms.com
With ongoing uncertainty about the economic outlook and the strength of recovery, businesses across all sectors are continuing to find ways to improve efficiency and cut costs. Martin Budd, director of business development at Crown Records Management, explores how better information management and data security procedures can help companies to streamline their processes, reduce costs and minimise risk.
While there are many measures that companies can take to protect themselves against the worst of the economy's ravages, implementing efficient records management processes is one way to provide both cost and time savings in the long-term, as well as preventing the reputation and financial damage that lost information can inflict.
Reducing Costs with Offsite Storage
Firstly, office and facility costs remain a major burden for many organisations. Despite the current economic uncertainty, average monthly office rents in the UK remain significant, often well over £50 (US$75) per square foot for prime office space in London. By contrast, outsourcing hard copy document storage costs around £1.58 (US $2.40) per month for the contents of a typical four-drawer filing cabinet, which requires 10 square feet of office space. Companies can therefore achieve significant reductions by utilising office space for essential use only and sending records offsite for storage.
Minimising Risk with Secure Storage Solutions
Secondly, careful records management protects companies against the financial implications and reputational damage caused by data losses. Consumer loyalty can be severely impacted if companies fail to treat personal and corporate information securely, with a survey conducted by YouGov and Check Point revealing that 91 percent of consumers would actively avoid purchasing goods or services from a company which had suffered information leaks.
Effective records management procedures also protect companies against the legal consequences of information losses. Data breaches often lead to substantial fines, so an audit to ensure data is not retained for longer than needed is well worthwhile. Such audits take into account all relevant legal and sector-specific regulations, with notifications whenever data has reached the end of its lifespan.
The importance of such action cannot be underestimated: a total of 99 data breaches–almost one every day–were reported to the information commissioner in the last quarter of 2008. What's more, a report commissioned by security firm McAfee suggests that data breaches alone cost the world's companies more than £700 billion (more than a trillion US dollars) in 2008 through a combination of legal fines, operational expenses and lost revenue.
Business Continuity Planning
Finally, effective records management is a key aspect of disaster recovery and business continuity planning. Whether it's a case of flooding, fire or IT failure, any inability to get back up and running quickly can prove expensive. By ensuring that crucial information is backed up and stored in a secure location, companies can significantly improve their chances of being able to return to normal operations as quickly as possible, thus avoiding increased costs.
To implement an effective policy, it is crucial that organisations foster a culture where records management and data protection is at the forefront of everyone's minds, rather than being viewed as the responsibility of one person or department. Companies should therefore establish stringent procedures for handling and storing information and ensure that all employees are aware of both their obligations and the potential consequences of data losses.
These procedures should cover all types of records, from electronic data and email to hard copy files, and should also encompass clear policies on the use of devices such as USB memory sticks, as well as the transportation of data. In addition, all sensitive electronic data should be encrypted, while hard copy information should be securely stored and its use carefully monitored.
It's clear that the cost savings and reduction of risk are issues that all companies must take seriously. By taking action now, companies can ensure that they are well prepared to navigate the road ahead.