Risks of Poor Record Management

What consequences do inadequate record-keeping practices in company operations have? 

There are a number of reasons why bad records management practices occur and concerns connected to out-of-date RIM programs when it comes to records and information management (RIM). Neglecting or minimising these risks might have detrimental effects on information management. This article offers some suggestions on where you might want to start if you’ve been intending to take on this effort but haven’t exactly prioritised it or weren’t quite sure where to start. The five areas listed below are where you should concentrate your modernisation efforts to prevent old RIM practices from suffering the negative effects of inadequate record keeping. 

What then are the reasons for bad record keeping? Your first possible risk focuses on ensuring quality. Poor records management practises may result from your lack of diligence in following established records management guidelines. The proverb “Garbage In, Garbage Out” is certainly familiar to you. And in this case, it surely applies. In today’s fast-paced, document-filled environment, effective information capture and filing come first in successful records management. Your entire system can quickly fall into disarray as a result of the effects of poor record keeping if you are not structured in the data that you record, its accuracy, storage locations, and versioning controls. 

Incorrect information handling 

Without a solid RIM, even your most dependable employees might accidentally handle documents incorrectly, putting your company at danger for legal and regulatory issues. Have you ever discovered a crucial form, for instance, on the copier at work? Or sent files to a colleague without first verifying their access rights? Or perhaps you know someone who threw away a record or paper that was safely destroyed or retained? You and your company may be at danger as a result of these bad records management mistakes. 

Regulatory Penalties & Fines 

A sound document retention strategy is essential to avoiding the repercussions of negligent record keeping, regardless of whether you manage medical data, legal documents, or other types of personal and financial information. Without it, you run the danger of incurring hefty fines, particularly if you throw away records too quickly or are unable to show them during an audit. By storing data over their retention periods, you run the risk of being more vulnerable to legal discovery or an at-fault breach than you should. 

During disasters damage can occur 

Natural catastrophes, floods, and fire may devastate a firm and permanently erase papers that were incorrectly maintained. Important and irreplaceable documents should be kept in secure record centres and climate-controlled subterranean vaults in areas with low environmental risk. Disaster recovery can protect your business from the damaging effects of bad record keeping. 

Loss of Time and Efficiency 

When businesses file and handle documents inefficiently, they run the risk of losing time and productivity as staff members search for the data they need to finish tasks. All of this time and effort translates into actual expenses that affect your bottom line.  

Don’t let these points listed above cause your RIM program and operations to spiral into chaos. 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.