Sarbanes-Oxley: Impacting the Records Management Industry
The Sarbanes-Oxley Act of 2002 (SOX) not only impacted the type of recordkeeping requirements for public companies, but it impacted private-sector storage companies as well. The legislation, which came about in response to the financial scandals at Enron and WorldComm, was designed to protect shareholders and the rest of the public from accounting errors and fraudulent practices within an enterprise. Administered by the Securities and Exchange Commission (SEC), it basically defines which records are to be stored—and for how long.
Typically, IT departments are assigned the task of maintaining a corporation’s digital records. Since SOX clearly states that all business records, including electronic records and messages, must be saved for “not less than five years,” it is a constant challenge to maintain these records in a cost-effective manner. To aid in further explaining the Act, it helps to know that it contains three rules that affect electronic records management. They deal with the following topics:
- the destruction, alteration or falsification of records
- the retention period for records storage
- the type of records that need to be stored, including electronic communications
As is the case with Sarbanes-Oxley, legislation is often complex. That’s why businesses turn to a reputable records management company to make sense of the ever-changing regulatory climate. Fireproof Records stays abreast of legislative changes that affect you and your business on a daily basis. For more information, visit www.fireproof.com
Tags: Records Management, Sarbanes Oxley, SOX
