As businesses navigate a sea of information, maintaining a structured approach to handling data becomes indispensable — this is where records management comes in.
How these records are stored and managed throughout the remainder of their lifecycle is what we discuss in this article, along with the benefits of a records management system and how that slots into document management.
- What is records management?
- Why is records management crucial for businesses?
- What are the benefits of effective records management?
- How does modern records management work?
- Utilising a document management system for records management
What is records management?
At its core, records management encompasses a spectrum of activities aimed at systematically controlling an organisation's records. Unlike general documents, records hold enduring value and require specialised handling for compliance and operational efficiency.
The goal of records management is to ensure that an organisation's information is organised, accessible and maintained in a way that meets legal, regulatory and operational requirements.
Understanding the difference between a record and a document is essential, as many believe them to be the same. A record includes any evidence of a translation, decision or commitment that an individual or company has made, while a document is something that holds information.
Following the document lifecycle, a document becomes a record after completing a business process.
Some common examples of records include:
- Financial records
- Medical records
- Legal records
- Personnel records
Records can be further segmented into two categories: active records and inactive records.
Active records are records that are currently being used within an organisation and are updated on a regular basis. On the other hand, inactive records are no longer needed as often but are still stored within the organisation for historical and legal reasons.
Why is records management crucial for businesses?
Records management isn’t just another business procedure we have to follow. It provides a solid foundation for all efficient business operations, ensures that an organisation complies with legal frameworks and safeguards important data.
It’s critical for a business to implement effective records management for compliance requirements and to improve risk management.
Compliance
Organisations need to adhere to laws and regulations governing the retention and protection of certain types of information. This is achieved through a records management system. The ICO has a records management checklist that you can use to assess your existing records management procedures and amend them accordingly.
We’ve highlighted three of the most critical aspects of records management for compliance purposes. including:
- Keep up with recent changes in records management regulations
- Understand the consequences of violations
- Identify any vulnerabilities in your present records management procedures using the ICO checklist
Risk management
Robust records management helps mitigate risks associated with data breaches, unauthorised access and legal disputes. It supports the preservation of vital records and helps organisations plan for and recover from unforeseen events.
Historical documentation
Records serve as historical documentation of an organisation's activities, decisions and achievements. This historical perspective can be valuable for future planning, analysis and learning, as well as following legal requirements on the document lifecycle.
What are the benefits of effective records management?
Records management improves efficiency, streamlines operations, enhances data protection and can save businesses money. Moreover, enterprise content management becomes seamless, contributing to a holistic approach to business data.
Efficiency and productivity
Well-organised records contribute to operational efficiency. Employees can quickly locate and retrieve needed information, reducing time spent searching for documents and improving overall productivity.
An IDC statistic widely recognised highlights that, in the past, employees spent an average of 4.5 hours per week searching for documents, resulting in a 20% decrease in overall productivity (circa 2001 and 2012).
While it's reasonable to assume that this number has decreased over time due to more companies adopting advanced records management solutions, there are still many who have not yet embraced digitalisation.
Decision-making
Access to accurate and timely information is crucial for informed and timely decision-making. Records management ensures that decision-makers have reliable data at their fingertips to make the right decisions for the business and its employees.
Cost savings
Effective records management can lead to cost savings by optimising storage space, reducing the risk of litigation and streamlining business processes.
How does modern records management work?
Every record undergoes a lifecycle from creation to disposal, with each stage demanding meticulous attention. Digital tools play an increasingly vital role, offering solutions for categorisation, indexing, secure storage and eventually document archiving solutions for historical purposes.
As technology advances, so does the way records management works. Below are some key aspects of modern records management:
Digitalisation
Modern records management is often digital, with an emphasis on creating, storing and managing records in electronic file formats. This facilitates easier access, retrieval and sharing of information.
Electronic document management systems (EDMS)
Organisations use EDMS to capture, store, organise and retrieve electronic documents. These systems often include features for version control, access control and audit trails.
Metadata and tagging
Records are tagged with metadata, making classifying, searching and managing them easier. This helps in organising records based on their content, creation date and other relevant information.
Retention schedules
Modern records management involves the creation and adherence to retention schedules. These schedules outline how long specific records should be retained, ensuring compliance with legal and regulatory requirements.
For the most part, it’s advised that records are kept for six years in the UK, but it’s always necessary to complete further research to see if any records and documentation need to be held for more extended periods.
Cloud-based solutions
Many organisations opt for cloud-based records management solutions. This allows for remote access, scalability and collaboration. Plus, there’s the added benefit of data backup and disaster recovery that you can’t get with physical solutions.
Security measures
Given the increasing threats to data security, modern records management incorporates robust security measures. This includes encryption, access controls and regular security audits to protect sensitive information.
Automation and AI
Automation and artificial intelligence (AI) are increasingly integrated into records management processes. This includes automated classification of documents, intelligent search capabilities and the use of AI for data analytics to derive insights from records.
User training and awareness
As technology evolves, user training and awareness are crucial. Employees need to be educated on proper records management practices, including the use of tools and adherence to policies.
Integration with business processes
Records management is more effective when integrated with an organisation's broader business processes. This ensures that records are created and managed seamlessly as part of everyday workflow management.
Compliance monitoring
Modern records management systems often include features for monitoring and ensuring compliance with various regulations and legal requirements. This is critical for avoiding legal issues and penalties.
Continuous improvement
Organisations regularly assess and update their records management processes. Continuous improvement involves incorporating feedback, staying abreast of technological advancements and adapting to changes in regulatory landscapes.
Utilising a document management system for records management
A robust document management system is integral to systematically organising, tracking and protecting records. Integrating a DMS into records management brings benefits such as enhanced accessibility, efficiency and comprehensive document security.
By leveraging a document management system for records management, organisations can enhance efficiency, ensure compliance and streamline their overall information management processes. It's an integral part of modernising information governance practices within an organisation.
Here's how organisations like yours can effectively use a DMS for records management.
Centralised storage
A DMS provides a centralised repository for storing electronic documents. This ensures records are kept in a structured manner, making it easy to locate and retrieve information when needed.
Document capture
A DMS enables the efficient capture of documents, whether through scanning physical documents or importing electronic files. This ensures all relevant records are included in the system.
Version control
Document management systems often include version control features. These features are crucial for tracking document changes over time, ensuring the most current and accurate version is always available.
Metadata and indexing
A DMS allows for the assignment of metadata to documents, which includes information such as document type, author, creation date and keywords, facilitating organised categorisation and quick retrieval.
Access controls
A DMS provides access controls to restrict and manage who can view, edit or delete specific records. Ultimately, this helps maintain data security and ensures sensitive information is only accessible to authorised users.
Workflow integration
Integration with workflow processes ensures that records management is seamlessly embedded into the organisation's daily operations. Documents can be sent through approval processes and records can be automatically categorised based on predefined rules.
Search and retrieval
Document management systems come with robust search functionalities, allowing users to locate specific records quickly. Advanced search options, including full-text search, make it easy to find information within records.
Audit trails
A DMS maintains audit trails, documenting who accessed a document, when it was accessed and any changes made. This is crucial for compliance purposes and provides transparency into the usage of records.
Retention policies
DMS allows organisations to define and enforce retention policies for different types of documents, ensuring records are kept for the necessary duration to meet legal and regulatory requirements and are disposed of appropriately.
Backup and disaster recovery
Document management systems often include robust backup and disaster recovery features. This safeguards records against data loss due to system failures, disasters or other unforeseen events.
Integration with external systems
A DMS can be integrated with other enterprise systems, such as Customer Relationship Management (CRM) or Enterprise Resource Planning (ERP) systems, ensuring consistency and coherence across different organisational functions.
User training and support
Suitable and in-depth training for employees on how to use the DMS is essential. This includes understanding how to input documents, use search features and adhere to records management policies.
