Datacatch Librarian Helps Small Business To Comply With Data Retention Laws

The new millennium has brought with it new challenges for data management and retention. All over the world, governments are introducing changes to the ways that companies are required to manage and retain their business data: tough new laws are being introduced, existing laws are being strictly enforced, and penalties for non-
compliance are being significantly increased.

It doesn't matter what size your company is—if you generate data that the government may be interested in, you need to understand which regulations you should be watching, how they affect you, and what you need to do.

Which laws apply to you?

Unfortunately, there is no quick answer to this. Regulations vary both by country and by industry. Companies that deal internationally also need to ensure that they satisfy the regulations of all countries in which they do business.

For example, companies doing business in the US may need to satisfy the Sarbanes-Oxley Act for public companies, SEC 17a-4 for financial services, and HIPAA for healthcare, all of which have their own rules for data retention and storage. Additionally, the IT organizations of many non-regulated companies are subject to corporate governance requirements to ensure data is retained and accessible when necessary, particularly from a legal discovery perspective.

The cost of non-compliance can be severe. Penalties under the Sarbanes-Oxley Act include fines of up to $5 million and imprisonment for up to 20 years.

In addition to compliance and industry regulations, many countries are introducing anti-terror legislation that also requires the retention of data for long periods of time.

A data retention policy is essential, not only to satisfy these new laws and industry regulations, but also to be able comply with discovery requests in a prompt and efficient manner.

Satisfying the basic requirements

Even though different countries and industries have their own rules and regulations, most have the following in common when it comes to storing electronic records:

• You need to create and be able to demonstrate that you've got a secure storage environment for your electronic business assets. This includes protecting information against alteration or deletion, for example by using WORM (write once, read many) media such as optical discs.
• Information needs to be stored in a format, and using a medium, that is able to be read for the duration of the retention period, which can be seven or more years.
• Information needs to be searchable and retrievable in a timely manner. Remember that time equals money: discovery costs can be huge and information often takes a long time to retrieve.

Implementing a data retention solution

The first step is to work out what you need to retain, how long you need to retain it, how quickly you need to be able to retrieve it, and how it should be disposed of at the end of the retention period.

Consider getting professional advice about this, because it is a very complex area. A recent article on the SearchStorage.com web site cited over 10,000 regulations affecting data retention in the US alone.

There are many products and services available that are aimed at the data retention market. Most of these are designed with large businesses and the enterprise in mind, and often cost too much for smaller businesses to consider.

As a result, many smaller businesses simply choose to ignore data retention—but high penalties make this potentially even more expensive than implementing an enterprise solution! It is far better to adopt a hybrid solution that is both affordable and better suited to small business needs. For example, a typical solution may include the following:

• Scan and convert paper documents to digital format to save on storage space and costs and to facilitate fast retrieval.
• Store digital records on archival-quality optical discs, which are affordable, have a life expectancy of up to 50 years, and are available in WORM (write once, read many) format that ensures existing records cannot be altered.
• Use commercially available optical disc storage units to protect and organize discs. These units provide protection against dust and UV light, and allow you to record the exact location of each disc. There are also lockable units available to provide additional security for sensitive information.
• Catalog, manage, and retrieve your discs and data using a commercially available utility for managing removable media, such as Datacatch® Librarian®. These utilities automatically catalog your discs, provide powerful search facilities so that you can quickly locate and retrieve any disc or file, and have reporting functionality and other tools to help you manage your archived media.

Cataloging archived data

Datacatch Librarian is the easiest way to catalog, manage and retrieve data stored on removable media including removable hard drives, USB thumb drives, flash memory cards, and optical discs such as CDs, DVDs, Blu-ray and HD-DVD discs. Here's how it works:

1. After determining what data you need to retain, write that data to archival-
   quality WORM optical media, such as a CD or DVD.
2. Insert the archive disc into a computer running Datacatch Librarian. Then click the message that pops up from the system tray asking whether you want to add this media to your library. This opens the New Media Properties dialog box.
3. Click the Catch Data button to capture the names of all files and folders stored on the disc, plus image thumbnails and metadata. You can also change the disc name if required. (The default name is the disc's volume label.)
4. Specify the location where the disc will be stored, for example the slot number within a CD storage unit, or the position on a shelf or in a cabinet.
5. Click OK to save the disc details in your library. Then remove the disc from your computer and store it. The disc is now cataloged and stored in a manner that makes retrieval a snap.

When it comes to retrieving a stored disc or file, you'll find that Datacatch Librarian makes it as easy to locate files stored on removable media as it is to search your hard drive or the Internet.

You can browse your library of locations, media, and files using Microsoft® Windows® Explorer. You can also search for a media title, file name, or other keyword. Within seconds, Bill the Datacatch Librarian will find which piece of media contains the information you need, and tell you where that media is located.

There's also a loan manager that keeps track of any media or locations that are removed, plus reports and other tools to help you manage your library.

Protecting your records is very important. If data or media are accidentally lost due to damage caused by incorrect handling or storage, you are still liable and can be charged under law with destruction of evidence. Therefore, you need to make sure that you store your records in a manner where you can reasonably assume that they are safe and will survive for the required retention period.

Final check list

Here are a few final things to consider for your data retention policy:

• Don't forget that email and instant messaging are business records and need to be retained.
• Don't overlook other information that may be considered business records as well, such as policies, procedures, and audit reports.
• Check before destroying any information. The organization may need it in order to defend itself in future audits and litigation.
• Don't assume that the retention requirement for all business-related information is the commonly-quoted "7 years." There are a lot of variables depending on the industry, type of organization, and type of information.
• Don't assume that just because you have access to archived information that you're going to be able to restore it within a reasonable amount of time. You need a solid set of procedures, so that you can meet legal demands as quickly and efficiently as possible while juggling all your other storage administration duties.
• Don't assume or expect that users can be trusted to do the right thing—especially when it comes to complying with and helping enforce your organization's information retention policy. Put checks in place to ensure that your procedures are being followed.

Summary

The world has changed, and the amount of information that businesses need to retain to satisfy industry regulations, legal discovery, compliance and anti-terrorism legislation grows each year. Small- to medium-sized businesses can now implement affordable solutions using archival quality optical discs, commercial CD storage units, and Datacatch Librarian. This solution will provide all of the tools needed to catalog, manage, protect, and retrieve their important archived data.

Copyright 2006 Datacatch (www.datacatch.com)

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