Tee Up Your Document Retention Policy -or End Up in the Woods

In a widely reported anecdote, pop singer Christina Aguilera was once introduced to golfing superstar Tiger Woods, one of the most recognized people on Earth. “Christina, I love your music,” Woods declared. “I have all your CDs...” “Sorry, I don’t follow tennis,” Aguilera said, “so I don’t know much about you.”

 

Unfortunately, ignorance is no excuse when it comes to compliance with record-retention policies and apathy will result in serious trouble.   The legal and regulatory risks associated with noncompliance include costly penalties, court sanctions, and adverse judgments.  In addition to these compliance risks, companies must also consider potential financial and strategic risks. According to Rich Bailey in “Leveraging Enterprise Records Management” in the Sarbanes-Oxley Compliance Journal, a recent survey found that “roughly 50 percent of respondents said they are less than confident that, if challenged in court, their organization could demonstrate that their electronic information is accurate, accessible, and trustworthy. Only now are organizations realizing the complexity and compliance requirements associated with e-records, including electronic documents, data, e-mail and instant messages. Another survey by CFO.com found more than one-third of top-level executives say their companies don’t have a disciplined way to deal with electronic discovery issues.”

 

ONE THIRD! That’s a lot of executives who are at serious risk of consequences due to their shortcomings in preparedness in dealing with electronic discovery issues. If your company has not already evaluated adopting a document retention policy, adopted a policy or, worse yet, is not following its existing document retention policy, get on the ball or you may end up being like another golfer, Harry Tofcano, who said, “I’m hitting the woods just great, but I’m having a terrible time getting out of them.”