Firms urged to back-up paper documents

Document management specialists Version One issued the warning following a survey of financial directors, 30% of which said they would never recover if their paper business documents were destroyed by a fire, flood, terrorist attack or other disaster.

The study also revealed that 32% of organisations would take a minimum of 12 months to recover from lost documentation, while the remaining 38% would take around 6 months to recover. This was despite the fact that 60% of organisations questioned claimed to have a business continuity plan in place.

The financial cost of all business documents going up in smoke was also significant, according to Version One. All organisations would incur some financial cost with 45% incurring at least £50,000, while 32% of organisations would incur between £100,000 and £800,000 and 15% would have financial costs of more than £1 million.

'Extremely alarming'

The study was carried out in the wake of the Buncefield oil depot explosion in Hemel Hempstead last month, which led to extensive damage to some nearby business premises.

Version One director Tony Bray said that the findings highlighted the "complete absence of measures organisations are taking to ensure business continuity."

"Many organisations think disasters such as the devastating fire at Buncefield just won't happen to them. This mentality is extremely alarming," he added.

"The only way organisations can ensure all business documents are protected in the event of a fire or flood, is by electronically storing all documentation from invoices and purchase orders through to despatch notes and technical drawings as well as keeping back-up copies off-site."

"Not only is electronically storing all incoming and outgoing documents common sense from a business continuity point of view, it also saves significant amounts of time, money and storage space."

January clear-out

Meanwhile, security experts have warned firms to be ultra-cautious when archiving surplus paperwork relating to their business.

The British Security Industry Association (BSIA) said that January was a time when many organisations would remove surplus paperwork from their offices either for archiving or shredding, but that responsible disposal of any confidential information was essential.

"Businesses should bear in mind a number of factors when clearing out old files," said Simon Pearce, chairman of the BSIA's information destruction section.

"Firstly, a business' responsibility under the Data Protection Act is key. If a company does not dispose of personal information such as client and employee details, company letterhead and directors' signatures carefully, then they run the risk of contravening the requirements of the Act and facing legal action.

"Irresponsible disposal of confidential information could also lead to your business becoming a victim of the 'bin-raiding' phenomenon. This involves stealing confidential information from rubbish bins, ultimately leading to identity fraud."