Poor Record Management Practices Can Be Costly

Poor record management is an evident risk to businesses. It has the power to create a ruckus and put your organization out of business. Lack of storage, high storage costs, lack of documentation, no shredding, etc., can all jeopardize your company. There can also be challenges you aren’t prepared for, leading to unimaginable consequences. All in all, poor record management can risk the safety and continuity of your data. And here is how the losses can add up quickly, resulting in a disturbed ROI:

Business Inefficiency

Poor document management practices result in major productivity losses. Employees might have to spend a lot of their valuable time finding or recreating lost or misplaced files. It also threatens customer satisfaction as documents aren’t promptly accessible. Employees fall behind on record-keeping tasks hindering sales, transactions, and revenue-generating opportunities.

Compliance Concerns

Every business must meet the necessary regulatory requirements and exercise due diligence when in trade. However, bad record management processes can cause serious compliance issues. A breach or theft can lead to disastrous circumstances for the organization. Also, incomplete or inaccurate documentation can result in hefty fines and/or penalties.

Security Risks

When you store confidential information at your workplace and your employees have access to that data, it can lead to an intentional or accidental information breach. This information can be in the form of employee data, customer data, financial records, and trade secrets. Not having proper protocols to safeguard this information can lead to theft or misuse, tarnishing your business reputation.

Real World Example

Record management refers to storing, handling, accessing, and distributing documents safely. A failure to have good document management can mean misused paperwork, unsecured emails, or miscommunication.

A recent real-world example is the Bank of America and Morgan Stanley record-keeping infringement case. Both business giants were fined $200M for doing trade on unapproved personal devices. The U.S. Securities and Exchange Commission fined 16 Wall Street financial firms over violated record-keeping provisions. This was a prime example of how important it is to have a plan in place and even follow it religiously. Also, the penalties seemed sufficient to even dent the wealthiest pockets.

Pathway to Good Record Management

Poor record-keeping can lead to identity theft, data breach, financial losses, and tarnished reputation. But there are ways you can prevent any costly errors from happening in the first place.

So, start by creating a retention schedule for all documents and designate an experienced records manager. Carefully sort and document all storage devices and paperwork. Develop a data destruction schedule with a trustworthy shredding services provider. Keep your records management policies up-to-date and always have protocols to track and monitor records.

Limit access to storage spaces or systems. Have emergency plans in place to address challenges. Finally, train your employees to follow records management best practices and manage their own documents effectively.

To Conclude

Companies today face a lot of challenges concerning record keeping. It is a time consuming and tedious job, and you might be unable to focus on it due to other essential responsibilities. But outdated and inadequate record-keeping procedures can prove costly for your business. So, start with automating most processes and going as paperless as possible. Scan all documents and look up "shred services near me" to shred papers beyond their retention period. In addition, invest in a reliable and efficient online storage system for enhanced safety.

A certificate of destruction is provided after each shred. Call Us Today to Schedule Your Shred!