Insights From 25 Years of Records Management

The Rise of Records RegulationsWhile government,records but the growing need to ensure that
legal and healthcare entities have traditionallyindividual's information was maintained and destroyed
maintained a disciplined approached to recordsappropriately, brought a greater focus to retention
management, most other industries were lessschedules and destruction policies.
regimented. In 2001, the Enron/Anderson scandalA Global Economy EmergesThe global economy has
triggered increased interest among corporations tobeen growing at a rapid pace, opening up foreign
take records management more seriously. Theinvestments and double digit growth in developing
Sarbanes-Oxley Act of 2002 established new andmarkets around the world. India and China led the
enhanced standards for U.S. companies to strengthenway, followed by the flourishing markets of Brazil,
corporate accounting controls and established criminalRussia and Vietnam. The Middle East is thriving and
penalties for manipulation, destruction or alteration offoreign direct investment is having a direct impact on
financial records-all of which required morethe economies of Africa. All of this growth has
standardization of records management practicesshifted the way organizations are looking at how
within an organization.they manage their business information.
With the media spotlight on the industry, recordsThe investment records management professionals
management experienced an abrupt change. Managingare making in standardized processes in their
information shifted from what many perceived to beAmerican, European or Asian Headquarters are being
a very low administrative task to a critical functionrolled out into the developing countries. Similar to
affecting the entire staff with accountabilitymany other industries, they are seeing the value in
designated to the most senior levels of thedeveloping global and regional processes and relying
organization. The need to access business informationon global and regional records management providers
in real-time grew in line with the emphasis onto help them educate and implement their policies
regulation. Businesses looked to informationaround the world.
management suppliers for consultancy services,The Myth of the Paperless Office
retention policy counseling, offsite storage solutions,No one knows the exact origin of the term
escrow services and destruction policies."paperless office" but it was recorded in a copy of
Data PrivacyThe increased use of the Internet andthe U.S. magazine Business Week in 1975-32 years
the resulting prevalence of identity theft resulted inago. At that time it was predicted that the advent of
the Data Privacy Act (DPA) of 1998, with thethe computer would mean that paper would no
European Union acting on the need for enforceablelonger be used in business. That prediction has
data privacy laws. A set of rules were created tocertainly not come true. People still want to print
govern how personally identifiable information isout-quickly, flawlessly and in vibrant color. In a world
stored and used, and was adapted in many otherof multiple vendors with incompatible systems and an
countries, including the United States. This optioninflux of new regulatory requirements, hard copies
created a Safe Harbor for those U.S. organizationsare the reality.
that want to exchange data with E.U. countries freelyIn line with stringent regulatory requirements, having
so that any organization that was certified as havingreal-time access to the information that's embedded
complied with the U.S. Department of Commerce'sin hard copies is imperative. Records management
provisions of data privacy were deemed to haveprofessionals became aware that despite the hype,
Safe Harbor with the E.U. data privacy directive.Whenthey would have to find solutions to transform their
an organization voluntarily certifies itself to Safehard copies into electronic data. Providers developed
Harbor, it agreed to follow the provisions ofsolutions using new technologies such as scanning,
information handling and held responsible for adheringimaging, data conversion and data hosting, to help
to those principles.their clients manage, access, protect and archive
Data Privacy also became an issue of interest forboth their hard copies and their electronic business
records management professionals. Their role hadinformation.
traditionally been primarily to protect an organization's