Whether you’re the owner of a small business or a compliance professional in a multinational organisation, the need for effective and efficient records management (RM) is undiminished. Yet for many businesses, RM remains a headache; something to be endured in order to avoid falling foul of compliance laws and regulations, rather than an opportunity to add genuine value.
Compliance is a major issue where RM is concerned. However, when records are managed in a manner that is both flexible and structured, the benefits to the organisation extend far beyond simply complying with the law. Kefron can help businesses unlock the true potential of effective records management; in this article we explain how RM can benefit you.
Good RM can minimise the effects of business interruption
From damaged buildings to destroyed shipping containers, business interruption is a matter of great concern. Recent research from Allianz revealed that the average large business interruption (BI) property insurance claim has risen to €2.2 million (£1.7 million), while the severity and frequency of these claims is also increasing.
While steps can be taken to protect against some common BI issues (such as cyber-attacks), others are extremely difficult to predict and even harder to prevent. With that in mind, it’s essential that organisations have a reliable records management system in place to allow them to get back to business as soon as possible after suffering any kind of interruption.
If employees are quickly and easily able to access backed-up (or original) documents stored electronically or off-site in the event of a disaster, it can dramatically reduce the amount of time taken for a business to resume normal operation.
Cut operational costs with records management
While keeping hold of records is essential, it can also be expensive. Indeed, the cost of keeping records is a significant – yet often unrecognised – factor to consider in any organisation’s operational expenditure. As such, it’s in the best interests of a company to implement an efficient records management system in order to deliver cost savings. For instance, the need to retain physical records to ensure compliance can be incorporated into your wider digital records management plan, all of which can be expertly handled by Kefron.
One way to achieve this is through identifying and getting rid of duplicate records, or those that no longer need to be retained. For records that simply have to be kept, it is often possible to store them off-site without negatively impacting the business, therefore reducing office space requirements and the cost of retention. At a time when many organisations – particularly public bodies such as local councils – are attempting to slash outgoings by moving to smaller premises, cutting down on the amount of paperwork stored on-site can make a real difference.
Free up time for your employees
An inefficient records management system doesn’t just cost you money in terms of extraneous document storage, it also costs your staff time.
Without a reliable RM process, employees can waste significant amounts of time tracking down crucial records, which ultimately has a negative effect on productivity. Indeed, a study from PwC claimed that 7.5 per cent of all company documents are lost, with the cost of finding these documents running to an average of $122 (£84).
For businesses with a complex process for retrieving records and strict requirements around control, speeding up retrieval can have a significant effect on time demands across the workforce.
Minimise legal risks
Of course, all of these measurable values are highly desirable. However, the additional benefit of quality RM in terms of reducing litigation risks should also not be underestimated. For instance, in 2012, Brighton and Sussex University Hospitals NHS Trust received a then-record fine of £325,000 from the Information Commissioner’s Office for selling hard drives containing sensitive patient data on eBay.
This fine – and many more besides – truly reinforces the value of quality records management. By getting your RM house in order, the benefits to your organisation will be substantial and wide-ranging.
Need a little support with easing your own records management headache? Find out how Kefron’s expertise can help you achieve real, measurable value from RM.