Records Management and Risk Management: The Same Thing

Records Management and Risk Management

At FileVault Records Storage, we’ve been operating North Carolina’s premium offsite records management facility for more than twenty (20) years, and we’ve had thousands of conversations about corporate records. In this post, we share insights about how records management mitigates risks for businesses. Are records management and risk management the same thing?

Compliance Risks

Compliance risks are a significant concern for businesses across various industries. Regulatory fines and penalties for non-compliance can be substantial, affecting a company’s financial health and reputation. Effective records management ensures that businesses adhere to legal requirements for document retention and destruction, thereby reducing the risk of non-compliance.

For instance, mishandling of information and poor records management can expose organizations to legal and compliance risks, including significant fines if records are destroyed too soon or cannot be produced during an audit [2]. Professional offsite records management services help businesses maintain proper document retention schedules and ensure that records are accessible when needed, thus mitigating compliance risks. Perhaps records management and risk management the same thing?

Physical Threats to Records

Physical threats, such as natural disasters, fires, and floods, pose a significant risk to records stored onsite. Who can’t recall the worst-ever catastrophe to an office building that destroyed many businesses? These events can lead to the irreversible loss of critical and irreplaceable documents. Offsite records storage facilities such as FileVault’s typically offer enhanced protection against such threats, including climate-controlled environments and fire-suppressant systems, to safeguard documents [1].

By storing records offsite, businesses can protect their vital information from physical damage, ensuring that it remains intact and accessible even in the face of disasters [2].

Risks Due to Missing Information

In sectors like healthcare, missing or inaccessible information can have dire consequences, including compromised patient care and legal liabilities. Offsite records management services improve the efficiency of retrieving crucial documents, reducing the time and effort spent searching for specific information [1]. This not only enhances operational efficiency but also ensures that critical information is readily available when needed, thereby reducing the risks associated with missing or hard-to-find records.

Other Risks

Poor records management can lead to a variety of other risks, including financial losses, decreased productivity, and data breaches. Financial risks arise from inefficient record keeping, which can affect a company’s ability to manage taxes, budgets, and payroll effectively [4]. Productivity losses occur when employees spend excessive time searching for documents, impacting the bottom line [2].

Additionally, data breaches and unauthorized access to sensitive information are significant concerns. Offsite records management service providers like FileVault address these risks by offering secure storage solutions with controlled access and advanced security measures, such as 24/7 video surveillance and guarded premises [1].

However, it’s important to note that offsite storage is not without its challenges. Concerns have been raised about the hidden costs, security risks, and inefficiencies associated with some offsite storage facilities [3]. Therefore, businesses must carefully select reputable providers that offer transparent pricing, robust security protocols, and efficient retrieval processes.

In conclusion, professional offsite records management offers a comprehensive solution to mitigate a wide range of corporate risks. By ensuring compliance with legal requirements, protecting records from physical threats, improving access to critical information, and addressing other potential risks, businesses can safeguard their valuable assets and maintain operational efficiency. As the corporate landscape continues to evolve, the importance of effective records management cannot be overstated. Companies that recognize and act on the benefits of professional offsite records management will be better positioned to navigate the complexities of the modern business environment.

If you would like a no-cost audit of you records-related risks, please reach out to FileVault and we’ll contact you to get started.

Citations:

[1] https://www.recordnations.com/blog/benefits-of-offsite-record-storage/

[2] https://www.accesscorp.com/blog/the-five-risks-of-poor-records-management/

[3] https://www.goadvanced.com/blog/document-management-risks-offsite-storage-facilities

Photo: C M