There has been much discussion in the media recently about the unlawful destruction of documents. Many organisations and companies benignly neglect this side of their business until they hit a crisis, by which time it is too late.

There is now renewed attention, if only from a risk management perspective. This article sets out the basic nuts and bolts of a Records Retention Programme (RRP) and offers broad guidance to those who want to ensure that their RRP could withstand closer scrutiny.

A RRP is the process of identifying your organisation's records and deciding which ones should be retained, in what form, where and for how long. Such an audit also includes specifying an eligible date for destruction and secure disposal.

There are several common misconceptions. Let's consider each of them in turn.

“All I have to do is follow the laws and regulations.” Do not start with the laws and regulations and then work towards your retention needs. Determine the needs for your specific organisation or company first and then match them against the legal requirements and guidelines.

“All we need to do is copy another organisation's retention programme.” One size does not fit all! Records differ from organisation to organisation, even within the same industry. There are differences in document folders, contents and file structures.

“All records are retained for seven years or permanently.” The seven-year retention period is not a good rule of thumb. Depending on the types of records, longer retention periods may apply. Very few records have to be kept permanently.

“Microfilming and scanning solve all my records retention problems.” They may well save physical space but you still need retention periods for the film, back up tapes and compact disks.

“My records are personal.” Wrong! All documents you receive or create in the course of working for your organisation belong to the organisation. Strictly speaking, they can be subpoenaed and taken from you, even if you have them at home.

The overriding message is that each organisation must carefully audit its own records and then work out its own retention decisions within the governing legal framework.

So, do all businesses need such a programme? It depends. If it saves money and space by promoting document disposal on a timely basis and genuinely improving operational efficiency, then the answer will usually be yes. Many of today's businesses need a programme as they manage risk more actively and have compliance infrastructures developed around ever more complex regulatory requirements.

A RRP can also protect vital or historical records of long-term value and reduce the chance of their inappropriate, inconsistent or reckless disposal. Size is another factor and the larger your organisation and its collection of records are the greater the likelihood of the need for a comprehensive and properly integrated retention programme.

A well designed, legally compliant RRP secures an organisation's corporate memory, as part of the wider mapping of its intellectual assets. This active mapping and mobilising of collective intelligence is now commonly called Knowledge Management. Viewed in this way, a RRP is an indispensable part of organisational accountability, distinguishing it from sloppy competitors.

What then are the statutory requirements for keeping records? In Bermuda and elsewhere, various laws set out Guidelines and there will often be a Statute of Limitation. The relevant laws in Bermuda are: The Proceeds of Crime Act 1997 - Guidance Notes on the Prevention of Money Laundering Bermuda, NAMLC, January 1998 edition, paragraphs 93-102, which specify time limits for keeping certain types of records.

The Companies Act 1981, sections 201A, 213, 255 and 261, give specific mandates for different types of company files and their destruction. The Evidence Act 1905, section 50A applies to Microfilming or Photographic Copying and section 69 covers their admissibility as documentary evidence.

The Electronic Transactions Act 1999 gives legal recognition to, conditions of retention and admissibility, and evidential weight to Electronic Records. The formation of a Records Retention Advisory Group is advisable, with representation from eligible departments or workgroups. Group members should thoroughly understand the work context of their records, including legal or compliance requirements. Each department or work group needs to assemble its own record retention schedule, so representatives should be both visible and fully conversant with the issues. The combination of these departmental retention schedules comprise the entire organisation's RRP.

Senior management should participate as and when appropriate in the advisory group, not only to ensure buy-in but also to provide the necessary authority behind implementation, in full awareness of the issues and costs of the programme.

Finally, we consider authorised methods of destruction. No specific method of destruction is prescribed, although incineration or recycling is normally preferred. Caution should be used in the destruction of any records, especially those containing non-public data or confidential material. Any such records should be properly and securely stored until destroyed. Records covered by a subpoena may not be destroyed; their destruction is illegal and will attract harsh penalties to employees as well as to organisations.

If after this short introduction, you need more advice, it is worth contacting the various Records Management professional bodies which exist (ARMA - International Organisation of Records Managers and Information Professionals - mainly for the US & Canada or RMS - The Records Management Society for the UK). They can also recommend suitable reading material to get you fully up to speed. Happy planning.

Paula Hodge is the Records Officer in the Knowledge Management Department of Appleby Spurling & Kempe, and a member of ARMA, the international Association of Records Managers & Administrators. Copies of Ms. Hodge's column can be obtained on the Appleby Spurling & Kempe website at www.ask.bm.

•This column should not be used as a substitute for professional legal advice. Before proceeding with any such matters, persons are advised to consult with a lawyer.