Mar 07, 2025

The Importance of Records Management in an Era of Compliance and Digital Efficiency

Newgen Software

According to research conducted by IDC, data workers dedicate approximately 30% of their weekly hours to searching for, governing, and preparing data. These numbers are especially challenging when keeping track of records, which are the documents and information that organizations must keep for compliance, regulation, and good management practices.

Records management tools and technologies help organizations adhere to regulations that require a retention period for documents and how they must be handled after the period expires. In addition, they allow you to automate the process of handling record-retention policies. These technologies, when implemented as per clearly defined and uniformly applied RM strategies and policies, can greatly contribute to the effective management of the information life-cycle across the organization.

What is Records Management?

Records management refers to the tracking and control of any record, whether physical or electronic. The records management is committed to ensuring that an organization’s information is orderly filed and retained in accordance with legal, regulatory, and operational requirements. Records management involves the processes relating to the creation, receipt, maintenance, use, and disposal of records. A record, in this context, is a piece of information that records a business transaction.

Records include contracts, paper files, reports, emails, memos, electronic files, videos, instant messaging logs, and databases. Physical boxes or file cabinets hold paper records at an office or a storage facility. On the other hand, the physical documents can be stored in off-site, on-site, or cloud storage media. Here are a few common records examples:

Financial records
Medical records
Legal records
Personnel records

Importance of Records Management

Records management ensures that records are securely stored, retrieved, and managed. It also helps ensure adherence to legal obligations and regulations concerning the handling, access, and utilization of information. Records management is important for several reasons, including:

Historical value: Historical value from the records helps you understand how businesses operated in the past, thus helping businesses organize their future operations and acknowledging historical data in making plans instead of relying on assumptions and intuition.
Security: Records management helps prevent the loss of documents, including the physical destruction of paper-based files, as well as digital records breaches, such as hacking attempts that can expose sensitive information online without authorization.
Compliance: A compliance program helps organizations follow every legal requirement related to document retention, including privacy rights regulations. This protects companies from the risk of being fined or sued because of poorly managed information.
Access control: Effective recordkeeping systems help organizations manage who can see certain types of information. They can control who can access information based on their job and responsibilities while also making sure security protocols are followed in different departments of the company.

Achieving Compliance with Records Management Standards

An organization’s adherence to important data protection laws is demonstrated by its compliance with appropriate standards. Some examples of these laws include the California Consumer Protection Act and the General Data Protection Regulation (GDPR). Both of these regulations require records officers to take steps to protect personal information from being misused by individuals and organizations. There are several ways to show compliance:

Setting up and managing a records management program, such as one defined by ISO 30301.
Creating and enforcing data protection and records management policies.
Developing records management protocols and performing regular reviews.
Applying records management controls based on the findings from compliance audits.

Staying compliant is essential because failing to do so may result in fines and other serious consequences.

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Real-Life Use Cases of Records Management/Examples of Records Management

Consider an example of a government organization. To modernize its records management system, this agency is focused on digitizing the operations of various relevant organizations while also ensuring the management and protection of national records. To streamline the record management process both within the authority and across 17 different government agencies, they’ve opted to utilize Newgen’s certified electronic document and record management system (EDRMS) products.

Securing the Future with Smarter Records Management

In recent years, records and information management (RIM) has seen a major shift. We’ve moved away from old-fashioned paper systems to modern digital platforms. This change isn’t just about going digital; it’s also about using technology to boost efficiency, enhance security, and make things more accessible.

A prime example of this transformation can be seen in the global market for document management systems. According to a report by Mordor Intelligence, the market is projected to increase from USD 10.51 billion in 2025 to USD 19.81 billion by 2030. That’s a significant growth rate, translating to a compound annual growth rate (CAGR) of 14.50% over the period. This surge is largely driven by the demand for smoother business operations, compliance with regulations, and the rising trend of remote work.

The statistics indicate that AI and Machine Learning (ML) are becoming more and more integrated into document management systems. By leveraging machine learning algorithms to analyze how documents are used, companies can better anticipate future needs and optimize their workflows. These technologies not only boost productivity but also enhance decision-making by providing smarter search capabilities, automated document classification, and predictive analytics.