Proper records management is one of the most crucial elements of disaster planning. The ability of an organization to retrieve critical documents and data after a disaster will greatly affect the financial cost of recovery. In extreme cases, the inability to recover critical records may result in a complete business failure.
From a disaster-planning perspective, the first step in developing your records management plan is to identify which records are vital and which are important. Vital records are records absolutely essential to the continued life of the business or whose destruction will result in a direct material financial loss. They are often irreplaceable. Important records are generally replaceable, although their replacement will result in a significant cost of time and money.
Vital and important records will include the following:
- Corporate: Articles of incorporation, by-laws, copyrights and patents, corporate seals, deeds and leases, directors and stockholders, minute book, stocks and bonds, etc.
- Financial: Accounts receivable, bank account information, checks and money, financial reports, general ledgers, insurance policies, payroll records, purchase records, etc.
- Human Resources: Pension and other benefit records, executive compensation plans, personnel files, policy manuals, etc.
- Manufacturing: Engineering drawings, inventory, research and development data, etc.
- Miscellaneous: Business continuation (disaster recovery) plan,* client lists, floor plans, marketing lists, site maps and drawings, etc.
- Tax: Contracts and agreements, tax returns, etc.
(*) Your business continuation plan should record important emergency information such as employee and emergency telephone numbers, equipment repair and operational instructions, fire and evacuation plans, and so forth.
Vital records first should be duplicated or triplicated, then stored with an off-site records-management company. Your off-site storage location should be a reasonable distance from your facility but far enough away to minimize the possibility of similar damage or destruction. At least one copy of each vital record should be secured at a fortified site (vaults, fireproof cabinets, etc.). At a minimum, important records should be duplicated and stored off-site.
If your organization does not have a formal records-management plan or if your plan has not been reviewed by a professional, contact a professional records-management company. It should be able to help you develop your plan and provide the appropriate level of disaster protection your records need.