QuickCounsel

 

Records Retention

Overview The Importance of a Records Retention Schedule Risks of Not Having a Retention Schedule Structural Elements Recommendations Additional Resources Rate this QuickCounsel

Overview

Records retention is one of the most important areas of a records management program. The process of records retention ensures that records are kept as long, as legally and operationally required, and that obsolete records are disposed of in a systematic and controlled manner. A legally compliant records retention schedule allows an organization to be compliant, manage intellectual property, control the costs of information storage, locate and retrieve documents for legal discovery, and dispose of records at the end of their business life.

Back to top

The Importance of a Records Retention Schedule

Records retention schedules serve as a company's legal authority to retain and purge records and, therefore, hold great importance for a company. The records retention schedule captures all of the types of records created and used by a company in the course of its business and indicates how long these records are required to be retained. A retention schedule needs to be developed and applied in a systematic manner, as part of a company's corporate-wide records management strategy. Both development and implementation of a retention schedule are important elements in establishing a "good faith" effort and ensuring a sound records management program.

Back to top

Risks of not having a Retention Schedule

As the volume of retained business records expands, so do the associated risks of not having a retention schedule. Not having a retention schedule may result in increased litigation exposure by retaining records longer than legally required and/or delayed response and inaccuracies to eDiscovery requests and regulatory investigations.

Establishing how long to retain records requires the development and implementation of a credible records retention policy. Irregularity or inconsistency in a company's records program or the absence of a credible records management program can splinter outsiders' assumptions of good faith. Absent a viable reason, keeping records for longer or shorter times than guidelines dictate exposes a company to unnecessary risk.

Back to top

Structural Elements

A retention schedule organizes a company's records in categories called record classes or records series-groupings of records that support similar business processes and that have related legal and operational retention requirements. Creating record classes allows a company to apply consistent retention practices to similar types of records. Each record class consists of a description of the process the records support and examples of the types of records that fall under the record class. A retention period or rule is associated with each record class. A retention period may be stated in terms of months or years, or may be expressed as contingent upon the occurrence of an event such as the termination of a contract or conclusion of a project. The retention schedule is accompanied by comprehensive legal research that documents current legal recordkeeping requirements and considerations.

Back to top

Recommendations

Overall, organizations are advised to drive towards consistency in every aspect of retention management. Other important considerations to make when developing a records retention schedule are:

Back to top

Additional Resources

ACC Resources

Sponsor Resources

Back to top

Have an idea for a quick counsel or interested in writing one?

• Submit your ideas by filling out our online topic proposal form.

The information in this QuickCounsel should not be construed as legal advice or legal opinion on specific facts and should not be considered representative of the views of its authors, its sponsors, and/or the ACC. This QuickCounsel is not intended as a definitive statement on the subject addressed. Rather, it is intended to serve as a tool providing practical advice and references for the busy in-house practitioner and other readers.

Back to top

Published July 12, 2010

Reprinted with permission from the Association of Corporate Counsel
2010 All Rights Reserved
www.acc.com