The why and how of international records retention.

• Author: Stephens, David O.

For a multinational organization with global business operations, records retention for its overseas business units is just as important as it is for its domestic operations. Unless the overseas units have well-developed and aggressively implemented records retention programs, they cannot control the growth of their records, ensure compliance with records retention laws and regulations, or reduce the legal liabilities that can sometimes be associated with document retention and disposal. Thus, records and information management (RIM) staff for these multinational organizations need workable strategies for expanding the scope of their records retention programs to ensure global coverage.

Multinational organizations are today confronted with explosive growth in the quantities of information they create and retain. This is particularly true for information in digital form which, according to many sources, is growing at rates somewhere between 20 and 60 percent per year. Most IT departments have devoted considerable attention to the capture, processing, and retrieval aspects of data management, but they have given very little attention to managing the life cycle of computer data. Moreover, the quantity of paper records continues to grow in most enterprises, even as a higher percentage of the total information resources of the enterprise exist as digital records. New information technologies have given organizations much greater capabilities to produce records in all formats, and this is exactly what is happening. Because the essential purpose of records retention is to effect the systematic disposal of records as soon as their value for any and all purposes expires, it is the principal tool by which the growth of records can be controlled.

Governments throughout the world impose numerous laws and regulations requiring regulated parties to retain certain records for specified lengths of time, and regulated parties are obliged to comply with them fully, in letter, spirit, and good faith. These government-imposed retention requirements frequently add confusion and uncertainty to questions concerning what an organization's information retention policies and practices should be. They must, however, be carefully considered by every enterprise that wishes to develop a formal program for the management of the information life cycle. A methodology for doing this is prescribed later in this article.

Finally, organizations everywhere must conduct business in a litigation-intensive environment. Because lawsuits are often decided largely, if not solely, on the basis of information contained in records, organizations must be very careful about what information they retain and for how long.

ISO 15489 and Retention

ISO15489-1 Information and Documentation--Records Management--Part I: General, which is the international standard for records management, is the foundation upon which international retention programs should be built. The standard states that "Records systems should be capable of facilitating and implementing decisions on the retention and disposition of records. It should be possible for these decisions to be made at any time in the existence of records, including during the design stage of records systems."

Multinational RIM managers should develop and implement global records retention programs that can claim compliance with the following characteristics.

Cultural Factors in International Retention

In the United States, the systematic disposal of business records under authority of a formal records retention program is a widely known and accepted business practice. While some business managers may be reluctant to agree to the disposal of their records, they generally understand the need for records retention. However, in many countries outside the United States, these factors may not be present.

The best method of dealing with this situation is to obtain a firm commitment from the senior executives of the organization and then conduct management briefings for many or all employees at each overseas location. These briefings should emphasize that all records retention policies will be developed such that they comply with the law and meet the organization's business needs.

Global "Baseline" Retention Policies

The concept of global "baseline" retention policies is increasingly popular among multinational organizations in their efforts to develop records retention policies of worldwide applicability. Under this concept, the corporate office establishes a "baseline" or minimum retention policy that is of mandatory, worldwide applicability for certain types of records. However, the policy provides flexibility for countries to exercise their discretion to lengthen or extend these baseline retention periods, based on valid legal or business needs.

Enterprise-wide Consistency in Retention Policies

Whether or not a company is multinational, it is a good idea to develop consistent retention policies (identical retention periods for the same types of records). If this practice is not followed, the organization may be placed in the uncomfortable position of explaining to legal authorities why a record exists in one location but not in another.

On the other hand, there are...