Businesses have always been left with the burden of keeping and organizing records. But as tedious as it may sound, keeping the right records and knowing how long to keep them is essential to businesses of any size. Needless to say, having a sound and reliable record retention policy on the side while your business operates has become indispensable.
The unfriendly legal environment that businesses face has become a major factor that led to the need for having a good record retention policy. Big businesses earning millions of dollars may face multiple litigations at a given time. This has caused them to invest in ediscovery softwares and other ways to improve records management in order to react properly if someone takes legal action against them. But it’s not just the multi-million dollar companies that took record retention and management to a higher level. Even the mid to small sized businesses have acknowledged the need for a good records retention policy.
The dramatic increase in electronically stored information (ESI) due to the dependence of using computers in day to day work has also contributed to the search for better record retention policies. Unlike paper documents, electronic data is more complicated to manage.
The main purpose of record retention policies is for self-protection when faced with a legal action. A poor record retention management could cause millions of dollars in lawsuit fines. The sensitivity of the issues involved in record retention has caused a debate on how it could successfully be implemented. But most would still agree that a more effective way to establish a reliable record retention policy is through using third party ediscovery software and document retention policy solution.