A complete guide to business Records Retention

Records Retention: a complete guide

Whether you're a business owner, a records manager, or someone interested in understanding records retention, this guide provides all the essential information you need. We cover everything from the basics of records retention to developing a policy and implementing a schedule. Let’s explore the world of records retention together.

What is Record Retention?

Records retention is the practice of storing and managing essential documents and files for a specific period. It is a critical aspect of information management for organisations across various sizes and industries.

Why is Records Retention important?

The significance of records retention cannot be overstated. Implementing a systematic approach to managing records ensures compliance with legal and regulatory requirements, protects sensitive information, and mitigates risks associated with data breaches and litigation.

Legal and regulatory requirements heavily influence records retention policies. Various laws and industry-specific regulations mandate the retention of specific documents for set periods. Non-compliance with these requirements can lead to severe penalties, fines, and legal consequences.

Implementing a records retention strategy offers numerous benefits. It helps organisations maintain an organised and efficient document management system by identifying essential records and determining their retention periods, optimising storage space and enhancing operational efficiency.

A records retention strategy ensures that important documents are readily accessible when needed, saving time and effort in locating specific files and facilitating quick retrieval of information.

A well-designed records retention strategy supports risk management and legal defense. In litigation or regulatory audits, having a documented retention policy demonstrates compliance efforts and aids in preserving relevant records.

How to develop a Records Retention policy

A records retention policy is a critical component of any organisation's information management strategy. It outlines the guidelines and procedures for how long various types of records should be retained and the proper disposal methods. A well-defined records retention policy ensures compliance with legal and regulatory requirements, minimises risks, improves efficiency, and reduces costs.

When developing a records retention policy, consider these key elements:

1. Identify the types of records: Start by identifying the different types of records your organisation generates or receives. This includes financial records, employee files, customer data, contracts, and more.

2. Determine retention periods: Research and understand the legal and regulatory requirements for each type of record to determine the appropriate retention periods.

3. Define storage and disposal methods: Establish guidelines for how records should be stored, organised, and protected during their retention period. Outline the proper disposal methods once records reach the end of their retention period.

Creating a customised Retention policy for your business

Creating a customised retention policy tailored to your organisation’s specific needs is crucial. Consider factors like industry-specific regulations, internal processes, and potential litigation risks. A one-size-fits-all approach may not adequately address your unique requirements.

Once your retention policy is in place, it’s important to regularly review, maintain, and update it. Best practices for maintaining and updating a retention policy include:

1. Regular audits: Conduct periodic audits to ensure compliance with the policy and identify any gaps or areas for improvement.

2. Stay informed about legal changes: Keep up-to-date with changes in laws and regulations that may impact your records retention requirements, and adjust your policy accordingly.

3. Training and awareness: Provide training to employees to ensure they understand the policy and their roles and responsibilities in records management.

By following these best practices and developing a robust records retention policy, your organisation can effectively manage its records, mitigate risks, and ensure compliance with applicable laws and regulations.

How to implement a Records Retention policy

Implementing a records retention schedule is vital for organisations to manage their information assets effectively. A well-designed retention schedule ensures that records are retained for the appropriate length of time, balancing legal and operational requirements.

When developing a records retention schedule, consider these key components:

1. Components of a records retention schedule: A comprehensive records retention schedule includes identifying different types of records within an organisation, such as financial records, employee records, customer data, and other relevant records. Each type of record should be categorised and assigned a retention period based on legal, regulatory, and operational requirements.

2. Determining retention periods for different types of records: Retention periods can vary based on factors like industry regulations, legal obligations, and business needs. Conduct a thorough analysis to determine the appropriate retention period for each type of record. This may involve consulting legal experts, considering industry best practices, and reviewing relevant laws and regulations.

3. Managing exceptions and legal holds within a retention schedule: While a records retention schedule provides guidelines for records management, there may be exceptions or legal holds requiring certain records to be retained longer or indefinitely. It’s essential to have a process to manage these exceptions effectively, ensuring compliance with legal obligations and avoiding potential risks.

By implementing a records retention schedule, organisations can streamline their information management processes, reduce storage costs, mitigate legal risks, and maintain compliance with regulations. Iron Mountain offers comprehensive records management solutions that can assist organisations in developing and implementing effective records retention. Protect your vital business records and start your records retention policy with our storage or destruction services today.