Records management is much more than just putting a piece of paper in a filing cabinet or sending a document to a folder on your PC.  In an organisation it is important that proper record management policies and procedures are put in place and updated regularly.  The policies and procedures should form part of the induction programme for new employees.  The consequences of not having a proper records management system could cost an organisation in time and money.

To understand the importance of records management and the consequences of a non-existent or inadequate records management (both paper and electronic), it is important to look at the work place and the changes that have gradually taken place since technology has evolved.

If we look at some of the catastrophes that have happened worldwide in the last couple of years and the consequences of an incorrect records management system, we will get a good idea of the consequences.

Disasters like Hurricane Katrina which was one of the single most catastrophic natural disasters in US history left an entire population displaced without any proof of who they were or where they lived.  Papers which were stored in courthouses, museums and businesses were soaked with contaminated flood water and were useless.  Electronic devices that were not stored were also destroyed!

The collapsing of the World Trade Centre in 2001.  Most businesses lost important records both paper and electronic which were vital to starting up their organisations again.  Insufficient backups of records both paper and electronic were not stored offsite and could not be replaced.

There have also been cases of records stored in basements of large organisations burning down (Nedbank 2009).  Records stored in boxes that have been relocated to unknown areas during office moves and many other instances where important records are lost due to insufficient records management.

In all these cases, important information could go astray, get into the wrong hands or simply not be available for litigation which could result in a huge expense for the company or an individual.