document storage centre

Loss of documents and data doesn't only represent a financial loss, it can damage a company's brand and reputation, and jeopardise a business' ability to continue trading.

Although many people associate data loss with digital documents, physical documents are also at risk of loss, theft or being tampered with.

Paper documents are at risk from fire as well. Statistics show that fire or flooding can have devastating consequences for businesses with 25% of businesses never reopening after an incident.

Poor physical records management is a real issue and one that should be treated seriously by those handling personal data.

According to a report by the Information Commissioner's Office (ICO) between 2019 and 2020 there were 307 incidents of loss or theft of paperwork because documents hadn't been left in a secure location. 14 incidents occurred because documents hadn't been disposed of correctly. You can read more about the data security incidents reported by the ICO here.

What are the biggest threats to company data?

There are several reasons why a business might lose some of its most important physical documents.

Theft by employees

Disgruntled employees might choose to steal important documents because they want to get revenge after they've been demoted or fired. The aim of many employees who commit this crime is to disrupt a business so that the company suffers financial losses or faces a PR disaster.

In other cases, employees might choose to share private data or a significant document with competitors for reward. A 2015 survey by Biscom found that 85% of employees admitted to taking company documents they had created themselves. These documents are likely to include potentially sensitive material.

Fire risks

The 2018 Global Claims Review highlighted that despite increasing concerns over IT security, fire remains the number one risk of major financial loss for businesses. By keeping important documents offsite in secure storage, firms can mitigate against fire damage.

Poor records management policies

A robust records management policy will ensure important documents are dealt with correctly. Failure to implement a policy could result in loss of sensitive information, fines and loss of business.

Without a clear policy, important documents might be damaged, lost, or misfiled. They may also be left in open sight or poorly managed by staff. This risk increases when external documents enter the workplace, such as CVs.

Some examples of poor records management include:

  • Multiple copies of sensitive documents taken but with no official record of how many.
  • Documents left on or near photocopiers or fax machines.
  • Documents left in easily accessible recycling or shredding bags. Russell Richardson provide sealable bags and lockable cabinets for confidential waste that needs shredding. You can find out more here.
  • Documents left in public spaces.
  • Records of customers, spreadsheets and financial information that can be accessed out of office hours by unauthorised staff, such as security personnel and cleaning teams.

The repercussions of this can be far reaching should a data breach occur. It's therefore important that if you store documents onsite, your company has a document management policy in place.

If you want to learn more about records management requirements, the ICO provides a really useful checklist and policy overview here or read our Best practice guide to records management here.

Legal responsibilities for secure document storage

In addition to suffering from business-related losses, the company might suffer from legal liability if it fails to store and protect data correctly.

Since launching in May 2018, Europe is now covered by the strongest privacy regulations globally. Unless a company is GDPR compliant, the business might be subject to legal proceedings in the event of leak, loss or poor storage of data. Under GDPR, a business can be fined up to 4% of its turnover, so poor paper document storage procedures can result in a large fine.

How does poor document storage impact on business?

Monetary fines

The Information Commissioner Office (ICO) is a non-departmental public body which is responsible for upholding information rights in the interest of the public. This means the ICO has the power to issue fines to companies who fail to comply with the law.

Below are just a few examples of fines the ICO has implemented to companies who have breached data laws:

  • A physical document data breach cost Norfolk County Council £60,000 after they left sensitive documents in a discarded filing cabinet.
  • Scottish Borders Council was fined (but successfully appealed the severity of the fine) £250,000 for leaving pension documentation in a recycling bin at a supermarket.
  • Kent Police were fined £100,000 by the ICO after highly sensitive and confidential information, including copies of police interview tapes, were left in a basement at the former site of a police station and found by the purchaser of the building.

Risk to business continuity and reputation

Data leaks and loss can affect a business' ability to continue trading. It's essential that businesses plan for this worst case scenario and as part of that, look at the security of document storage in a wider business continuity plan.

Once documents have been leaked, it can be difficult to track and prove the source of the leak. According to the 2018 Ponemon Institutes study, the average time it took to identify a breach was 197 days. In the interim period, the people affected by the breach could be subjected to identity fraud and/or financial loss.

Negative PR and press coverage

We live in the age of information, so leaked data can instantly cause significant negative public relations and press coverage. The use of social media makes it increasingly difficult for businesses to contain data security issues.

Once in the public domain, the knock-on effect to business can be very serious.

A survey from Verizon found customer data breaches to be hugely damaging to businesses. 52% of customers surveyed said they would avoid the company for four to six months; almost a third (29%) said they would never use the brand again.

Why choose offsite storage?

Archiving documents offsite means storing them in a secure facility for extended periods, guaranteeing their safety and access by authorised personnel when needed.

Choosing a special archiving company means that security vetted professionals will handle, record, and store your data in compliance with the law.

According to the ICO's study, in 2016 about 40% of UK data security incidents were attributed to papers that were damaged, sent in error, leaked, stolen, or misplaced by employees. Using a professional document storage company will drastically reduce the risk of data breaches.

You can find out more about the three different types of offsite document storage and the benefits of each with each by reading our guide What is document archiving and how does it work?

6 Benefits of offsite storage facilities

Although individual services vary, the following features are usually provided by reputable offsite storage facilities.

1. CCTV and fire suppression

Most secure document storage facilities will use CCTV systems to protect their clients' documents. These buildings are also specifically set up for maximum fire resistance and will have features such as fire suppression systems.

2. Secure access with access control systems

Access control is one of the main perks of hiring a professional archiving company. Secure access control will keep a clear record of who has handled, moved, viewed or worked with your documents. In a normal working environment, this is very unlikely to be adhered to.

3. Archiving software

Archiving software allows you to easily locate, track and request important documents whenever you need them. This guarantees that you'll have fast and secure access to data whether in digital or paper format.

If you're opting for a scan-on-demand option, you can use the software to request documents electronically so they can be scanned and sent to you.

You can also use the software to track your papers and see who has seen them, worked on them, and when and how they were destroyed.

4. Security vetted staff

Security vetted staff are carefully chosen and trained before being granted access to your data and documents.

5. Secure transportation

All delivery vans are properly tracked to make sure your documents are securely delivered.

6. Confidential document shredding service

If your data is no longer needed, the archiving company will securely dispose of these documents. You'll then be given a certificate of destruction as proof the documents have been securely destroyed.

How much does it cost?

The cost varies quite a lot depending on the number of boxes and the location.

How to improve your onsite secure document storage

Onsite document storage means storing your documents in a designated area on your business premises. Although this option is unlikely to be as secure as specialist offsite document storage facilities, there are a few things you can do to improve security and organisation.

Secure cabinets

You can buy secure cabinets to store your documents in. The cost of the cabinets will depend on their size and the amount you're going to buy.

Document boxes

Storing documents in archiving boxes will make it easier for you to follow your document archiving policy and label and store documents correctly. If you don't have the correct boxes, you may find that, even if you do follow a document archiving policy, documents may be difficult to file correctly, causing potential security issues.

If you want to find out more about archiving boxes then read our guide How to choose a quality archiving box.

Secure shredding containers

If you have nowhere secure to store documents that need shredding, then this could increase the risk of confidential waste falling into the wrong hands. To avoid this, choose a shredding company that provides secure document storage for documents waiting to be shredded.

At Russell Richardson we provide sealable sacks, wooden lockable cabinets, lockable wheelies bins or skips. You can find out more about shredding containers from Russell Richardson here.

What are the disadvantages of onsite storage?

While most business owners feel they can manage with onsite storage, it comes with risks and disadvantages.

  • This option requires self-policing. This means that you, or an employee, will be held accountable for maintaining control over the documents. You might not be qualified to do this job, be too busy to maintain it or simply lack the tools needed to be able to do the job properly.
  • Onsite storage is unlikely to be as secure as hiring a professional archiving company.
  • If you need to employ or designate staff for records management duties then this may cost more than using a professional document storage company.
  • Document boxes and cabinets can take up valuable room on your premises and make your office look cluttered.
  • Onsite storage increases GDPR compliance concerns. Your data may be available for unauthorised employees onsite to examine, increasing the risk of a data breach.

If you would like more information on our secure document storage service, please contact us at info@russellrichardson.co.uk or ring 0800 294 6552.

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