New Report Reveals Companies Struggle to Manage Electronic Records

January 26, 2010

Iron Mountain to discuss report findings in Jan. 28 Webcast

BOSTON, Jan 26, 2010 (BUSINESS WIRE) -- Iron Mountain Incorporated, (NYSE: IRM), an information management services company, today released its second Compliance Benchmark Report: Best Practices for Records Management, a review of how companies store and destroy business records to comply with state and federal laws.

Chief among the report's findings is that while many organizations (80 percent) have command of the basics for managing physical records, less than one in four (23 percent) have established policies that cover electronic records - e-mail, images and other forms of digital data. This disparity, further complicated by the continued explosion in the growth of electronic information, the expanding regulatory environment governing records management (for example, recent FACTA Red Flag and Federal Rules of Civil Procedure statutes) and heightened litigation demands, serve to underscore the challenge facing companies in managing their electronic records.

"In our mission to help businesses solve information management challenges, we have developed a unique perspective on how companies should approach managing records," said Bob Brennan, president and CEO, Iron Mountain. "Simply put, managing records is about managing risk. The organizations who understand this have developed enterprise-wide programs that provide them quick access to information, manageable storage costs, and peace of mind that they've made good-faith efforts to comply with increasing regulatory requirements."

Iron Mountain's Compliance Benchmark Report surveyed almost 3,500 individuals within public, private, government and non-profit organizations across varying industries and sectors to assess the state of records management compliance. The company publishes the report, in part, to provide a benchmark for its customers and other organizations to assess, improve and mature their records management programs.

Key findings of the Compliance Benchmark Report include:

  • Sixty-four percent of companies are committed to improving their records management programs. The majority of organizations surveyed have only basic records management programs in place. These include formal records policies and procedures, retention schedules, offsite storage of critical backup tapes and hard copy records, and systems for rapid records retrieval. These basics constitute the underpinnings of any compliant records management program; companies looking to go further need to consider polices and procedures for electronic records, employee training and compliance auditing.
  • Companies with the strongest records management practices employ formal programs governed by multi-disciplinary teams across the organization. These organizations tend to be larger companies in more highly regulated industries or those that have faced trigger events like a compliance audit or litigation fine. They effectively use cross-functional steering committees to set guidelines and company-wide policies for records management compliance. Those with less mature records management programs tend to be smaller and have not experienced trigger events to compel them to establish formal programs.
  • Fifty-four percent of organizations surveyed use an enterprise-wide retention schedule for the proper preservation and destruction of information.A records retention schedule, a guide for how long organizations must store information before destroying it, provides the blueprint for compliant records management practices. Yet only 48 percent of organizations surveyed have records retention schedules that address hard copy and electronic records. The absence of a proper retention schedule can undermine an organization's best efforts to manage its information assets, opening the company up to considerable risk for possible legal and regulatory infringements.
  • Less than one third of companies have formal methods in place for accessing and managing electronic records for legal discovery. Despite growing volumes of electronic records, organizations remain better prepared for accessing hardcopy records than electronic records. (In comparison, two out of three companies have a quick retrieval process for their hardcopy records.)
  • Almost two out of three companies do not conduct regular, across-the-board employee training programs.Only 37 percent of organizations surveyed conduct any form of records management training. To be effective, an organization's compliance program requires rigorous ongoing education with employees; this education will help create enterprise-wide awareness of - and adherence to - company policies for storing, accessing, and destroying information in compliance with regulations.

 

"The report offers a deeper and wider statistical analysis of our benchmark data than ever before, revealing some interesting insights in records management maturity," continued Brennan. "It is my hope that it serves as a useful and educational resource and reference for organizations looking to better understand best practices and advance their records management programs."

Organizations can access the Iron Mountain Compliance Benchmark Report by registering for a free Jan. 28 Webcast titled "New Insights in Records Management Compliance" at www.ironmountain.com/insights.

About Iron Mountain

Iron Mountain Incorporated (NYSE:IRM) helps organizations around the world reduce the costs and risks associated with information protection and storage. The Company offers comprehensive records management and data protection solutions, along with the expertise and experience to address complex information challenges such as rising storage costs, litigation, regulatory compliance and disaster recovery. Founded in 1951, Iron Mountain is a trusted partner to more than 140,000 corporate clients throughout North America, Europe, Latin America and Asia Pacific. For more information, visit the Company's Web site at www.ironmountain.com.

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SOURCE: Iron Mountain Incorporated

Iron Mountain
Christian T. Potts, 617-535-8721
christian.potts@ironmountain.com
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Weber Shandwick
Kristen Georgian, 617-520-7042
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