BUSINESS RECORDS MANAGEMENT PROCESS
Nayli Wahidah Bt Mohd Zawayi
Faculty of Information Management
Universiti Teknologi MARA
Puncak Perdana Campus
nelywahidah95@gmail.com
ABSTRACT
This article is present about business records management process
for early stage until the last stages.
This article told the readers about definition of the capture, classify,
use and tracking, dispose, storage, registration and access and security of the
records. Records sometimes have their own value and sometimes it does not have
value. In order to protect record’s value, the business record can implement
record management process in order to prevent the record being dispose. There
are several process that need to taking care when store and kept the records. Hope
this article can give more information about business record management
process.
Keywords: record,
capture, classification, managing record process, use and tracking,
registration, disposition, storage
1.0
INTRODUCTION
Records, as previously defined in most laws, were historically
characterized in large part by format, for example:
· Georgia
: “Records means all documents, papers, letters, maps, books (except books in
formally organized libraries), microfilm, magnetic tape, or other material…made
or received pursuant to law or ordinance or in performance of functions by any
agency”
· Kentucky
: "Public record or record" means all books, papers, maps,
photographs, cards, tapes, disks, diskettes, recordings, and other documentary
materials, regardless of physical form or characteristics, which are prepared,
owned, used, in the possession of or retained by a public agency.
Records also can be defined as any recorded information or data in
any physical format or media created or received by an organization during its
course of official business and kept as evidence of polices, decisions,
procedures, functions, activities and transactions.
Besides, ISO 15489 (2016) define the record as a information
created, received, and maintained as evidence and information by an
organization or person, in pursuance of legal obligations or in the transaction
of business. Meanwhile, in the context of state laws, a more contemporary definition
of record might read “Data or information created or received in the course of
agency business; that has been fixed on some medium; that has content, context,
and structure; and that is maintained as evidence of that activity.”
One common one is "the field of management responsible for the
systematic control of the creation, maintenance, use, and disposition of
records". The success of your
business depends on creating and maintaining an effective record system,
whether your business is a sole proprietorship, partnership, or corporation,
says Todd D. Kleine (2016). In addition, record is a evidence of that certain
organization does. They capture the organization activities and transaction
such as financial statement, business correspondence, staff details and more.
Business records management is the field of management
responsibility for efficient and systematic control the record lifecycle which
are creation, maintenance, use and disposition of business record. This process
are aim to achieve the efficiency and economy as well as to preserve the
business records by the agency as evidence following the guidelines of
regulatory requirement. Meanwhile according to Nurussobah Hussin (2013),
business record are business information that contains the transaction between
two or more parties in the form of electronic and paper documents that are kept
for evidence and future references. Business records are created in the course
of conducting business. According to ISO 15489 (2016), process of managing record include
:-
- Capture
- Registration
- Classification
- Access and security classification
- Identification of disposition status
- Storage
- Use and tracking
- Disposition
2.0
CAPTURE
Capture is a process of determining that the record should be kept,
create and also duplicate. A record must be created when evidence of decisions
or actions and transactions is needed. It should be done whilst the action is
occurring or decision is being taken, or soon afterwards. Records are required
for important substantive and administrative decisions, actions and
transactions (substantive records and administrative records).
Capturing records into the corporate records management system
links records to business activities helping to ensure their authenticity and
inviolability. Northern Territory Government (2016). Meanwhile, according to Nurussobah
Hussin (2013), capture is the process of determining that the records should be
made and kept. This includes both records created and received by the
organization such as correspondence and memos.
According to AIIM (2016), while you are reviewing your documents,
you should also determine how you will archive records once they are captured.
Always remember that some information is valuable based on business rules. Some
information may not be valuable to the organization but may but have value for
a specific individual. It also important to remember that not all information
need to be captured.
.
There are diverse ways records can be made including handwritten
notes, finishing structures or formats, making and transmitting an email,
making a reminder or note for document, making word prepared archives, taking
photos (taken either carefully or generally), making video tapes, DVD and
conventional film recordings, making sound tapes, CD and other sound recordings
and entering information into a database.
But, in paper record system capture can be affected by physical
placing a document into a chronological sequence within a file or folder that
contains a title. Electronic records systems can capture documents in more
deliberate process that, to all intents and purpose is the same as
registration. System that capture record also need to capture metadata.
3.0 REGISTRATION
According to ARMS (2010), registration involves creating and
maintaining a detailed file list or inventory, with entries for every file
(logical and physical, including each part or volume). It captures the details including
the title, the date opened, the date closed, the file reference, the home (or
permanent) location, and the current location. It should also include the
relevant retention details for each file.
A record is registered when it is captured into the recordkeeping
system, providing evidence that it has been created or captured. It involves
recording descriptive information about the record in a register, and assigning
the record a unique identifier.
In those system where registration is used, it is purpose is to
provide evidence that a record has been created or captured in a records
system, says Nurussobah Hussin (2013).
A unique identifier assigned from the system which are :
- · Documents name or title
- · Date and time of documents
- · The abstract
- · Author of the document
- · Business system from which record are capture
- · The documents classification
4.0 CLASSIFICATION
Classification is the process of grouping related records together
based on the business functions and activities of an organization. It is used
to name and describe specific folders that contain like subject matter, in
addition to specific subject matter terms. UTAS (2014)
ISO 15489 (2016) defines classification as a: “systematic
identification and arrangement of business activities and/or records into
categories according to logically structured conventions, methods, and
procedural rules represented in a classification system”. According to NECCC (2004), classification is defined
as develop and adopt data classification standards to protect information from
unauthorized or accidental disclosure, modification, or loss. Data
classification categories may be as simple as “Open” or “Confidential,” or the
classification categories may be more elaborate. Classification standards
should be based on applicable laws, legal, and regulatory requirements, not
individual desires.
To facilitate a wide range of records management activities,
including identification, capturing and retrieval of records, security and
access control as well as disposal, records should be systematically organized
according to records classification schemes (also called file plans), which are
plans for logical arrangement of records according to one or more of the following:
business functions, activities and contents of the records.
Based on Nurussobah Hussin (2013), classification systems maybe
derived from the analysis of business processes to ensure that the records and
their metadata description accurately represent the business processes that
created them. The structure of the classification system is usually
hierarchical as follows as :
- The first level usually reflects the business function
- . The second level is based on the activities constituting the function
- . Meanwhile, the third level and subsequent are for activities of group of transaction that take place within each activity.
5.0 ACCESS AND SECURITY CLASSIFICATION
According to UTAS (2014), all officers can access the business
records created by the agencies that they require to conduct their operational
requirements of their business role. There may be specific legislation and
policies that govern accessibility of some information. Records that contain
personal, commercial or operationally sensitive information will be identified
and restricted to ensure that only those officers that have a business reason
to access this information will be able to do so.
Meanwhile, according to Nurussobah Hussin (2013), a formal
instrument that identifies the rights to access and the rule of restriction
applicable to records is a necessary tool to manage records in all
organizations of all size. Again, ISO 15489 (2016) states that “organizations
should have formal guidelines regulating who is permitted access to records and
in what circumstances”
An organization should ensure that timely access to records is
provided to authorize users for conducting business. On the other hand, to
provide sensitive information with adequate protection, records should be
classified according to their level of sensitivity at a particular time. An
organization should also lay down guidelines on the protection, processing and
transmission of classified records.
Access to record may be restricted to protect :
- Personal information and details
- The intellectual property
- Security of property
- State security
- Military security
6.0 IDENTIFICATION
OF DISPOSITION STATUS
According to Laurie Fischer (2006), records retention schedules are
the primary tools that assist an organization in the management of its records
because they provide the rationale behind retention policy as well as direction
and guidance on other recordkeeping requirements and conditions. Meanwhile,
based on William Perry (2007), the period of time that a record /information
shall /should be kept. This period may be divided into:
- Active Retention Period – This is the time of the records or data are accessible for recovery.
- Inactive Retention Period – This is the length of time of the records or data are held to meet the long haul.
Good record retention is in the best interest of companies. A poor
system of retention will prevent managers from retrieving information needed to
make sound business decisions. A poor record keeping retention system also
poses a security risk. However, every company should have retention policies in
order to 'determine how long it should keep certain records. The policies are important
for many reasons, including legal requirements that apply to some documents,
says Gall (2000).
The process requires reference to a disposition authority of a more
or less formal nature depending on the size and nature of the organization and
its accountabilities, says Nurussobah Hussin (2013) in her book. Retention period is the period the records are
to be kept after active use but before their final disposal. Determining what
record should be captured and how long they should kept. The identification
should be done before records are create, before record keeping system are
being design, before dispose and when required.
According to David Farneth (2005), the major functions on
the retention schedule will not necessarily correlate to the physical
arrangement of records in the archives, nor will they reflect existing office
file plans. Some of the characteristics of a record are:
- · Contains legal or regulatory compliance information6
- · Evidences a transaction
- · Identifies participants in business activities or who had knowledge of an event
- · Proves a business‐related event or activity occurred or did not occur
It may be useful when making retention decisions to sort records
into three categories
- Records with enduring value - Retain Permanently
- Records with limited value - Retain 3 years unless required longer for legal or regulatory purposes
- Records of little or no long‐term value - Retain: 0‐30 days or until no longer needed for reference
7.0 STORAGE
The records that are containing sensitive or confidential
information must be identified. Protocols and procedures must be put in place
to appropriately manage and protect these records, regardless of format, from unauthorized
access, damage and loss, UTAS (2014).
Records should be stored in such a manner so as to facilitate user
access and ensure that they are protected from unauthorized access, use,
disclosure, removal, deterioration, loss or destruction. An organization should
lay down guidelines on the storage of records including sensitive or classified
records. For records in paper form, organizations should note that paper
deteriorates rapidly in an environment of high temperature and humidity.
Furthermore, mold growth on paper can be a health hazard to staff.
According to Nurussobah Hussin (2013) storage is important in
managing business records. Without proper storage, records cannot be retained
or kept for as long as it is needed. Appropriate storage conditions ensure that
records are protected, accessible and manage in an effective cost manner. The selection of storage area should consider the suitable area,
environmental control, security requirements and limitations in addition to
physical storage conditions. When records are no longer required for everyday
reference, it may be a more economical use of space to store them in a records
storage area rather than in office accommodation, Jenny Middleton (2005).
8.0 USE AND TRACKING
According to ARMS (2010), creating, capturing and maintaining
information about the movement and use of records. Meanwhile, according to
Nurussobah Hussin (2013), the patterns of records usage are useful for
establishing the currency of the information contained in the records and
providing a measure for determining when disposition action should be taken. Keeping or using a good business records will not only help
agencies stay in business but may also help them to increase profits. They
provide information for decision making, for documentation, for response to
inquiries, for reference for user and also to support legal requirement.
An organization should decide the type of information that needs to
be maintained to facilitate tracking of records, and to adopt means to track
the whereabouts and movement of records. It can ensure that users with
permission of authorized person only can access the record. The level of access
controlling are depend on the nature of business that they produce. To minimize the risk of losing records during bulk relocation of
files, it is necessary for an organization to make appropriate arrangements to
ensure that the relocation process is properly supervised and conducted.
9.0 DISPOSITION
Based on ARMA (2012), ‘Disposal’ in this context does not just mean
destruction. It embraces any action taken (or yet to be taken) to determine the
fate of records including transfer to a permanent archive. Those actions taken regarding records no
longer needed for the conduct the regular current business of the creator, says
NARA (2011). According to Laurie Sletten (2016), the systematic treatment of
records that are no longer active. Options for disposition are:
1. Transfer to an inactive records storage area or commercial
records center,
2. Transfer to the University Archives, or
3. Records destruction.
Disposition is the final stage in any record’s lifecycle, and
proper disposition is an important part of any records management program. For
records with enduring value, usually identified as permanent in records
retention schedules, disposition may involve transfer to an archival facility.
Agencies need to contact their archival institution for proper transfer
instructions.
According to Nurussobah Hussin (2013), the implementation of
disposition will be effective and successful if the organization could refer to
the records retention, records inventory and destruction schedule of the
organization. Disposition is the final action taken with regards to records as
consequence of their appraisal and the expiration of the retention period.
Besides, appraisal is a process of determining the value of records. If the records
have a value, so the record needs to be keep longer.
The disposal process should be properly supervised by adopting the
following procedures:
· prepare an accurate list of records to be disposed of. Records (including those stored off-site) to be disposed of should be physically checked against the list to ensure its accuracy
· ensure the completeness of records having archival value
· segregate records approved for destruction to ensure that they do not mix up with those pending approval
· destroy classified records and records containing sensitive information
· document the procedures for accountability.
10.0
CONCLUSION
In conclusion, process in order to manage business records should
be apply to maintain records productivity. These processes include from the
first stage which is capture the records until the last stage which is disposing
the records. The record should be register according their documents title,
date and time. We need to classify these records according their subject such
as personal information, state detail, military detail and security of
property. We also acknowledge the record should be store properly to protect
their value and confidential. Besides, the record can easily being retrieve.
The record also must be dispose according to standard policies that had been
made by National Archive Act.
11.0
REFERENCES
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David Farneth, CRM and Barbara E. Nye (2005).
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Joseph P., Debowski S., and Goldschmidt, P.
(2012). Emerald Article: Paradigm shifts in recordkeeping responsibilities:
Implication for ISO 15489's implementation. Records Management Journal, 22(1),
57-75
Myburgh, S. 2(005). Records Management and
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Ngulube, P. (2006). Management of business
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business records management. Seri Kembangan, Selangor: Univision Press Sdn.
