Information, in the form of documents and other created materials, is a critical asset of any corporation. In fact, it’s just as important, if not more important than physical and intellectual assets. As such, companies must have an effective document management system that works in conjunction with their enterprise risk management system. As document scrutiny heightens with every new regulation, document management becomes more vital, especially for risk management reasons. Here’s how to improve your risk management with document management.
Readily Accessible Documents
As any company grows, more and more documents are produced from all areas of the business. Without a document management solution, this information is scattered around the company, living on various computers, inaccessible to everyone who needs to be able to obtain that document at any given time. A proper document management system ensures that all documents are generated from a single point and are stored in a manner that allows those who need access to them have access to them.
An automated document management system ensures visibility into the creation of company-wide documents such as policies that must be readily accessible to specific audiences. You can control who has access to which documents, track changes, and assign tasks such as edits, reviews, and approvals. Confidentiality is also easier since an automated document management system protects documents that should only be viewed by select employees.
Document Management = Risk Management
Document management isn’t just a good practice. It’s a necessity, especially for businesses in highly-regulated industries like finance and insurance. If you’re unable to produce specific documents and relevant records when requested, you could be at risk of damaging your company’s reputation, not to mention at risk of being liable for fines, damages, and other penalties. The loss of a single crucial document can lead to lawsuits, which no company wants.
An automated document management system helps you stay in compliance with records regulations and ensures you keep documents for the right amount of time. Some records are required to be destroyed after a set amount of time, and your management system will notify you when this applies to your documents, ensuring you stay in compliance no matter what.
Document Management Starts With a Plan
While developing a document management plan isn’t always easy, there are automated tools available that can assist you with creating a system that will work for your company. These tools are designed to make document management as straightforward as possible so you can streamline workflows like reviewing, editing, and approving changes, collaborating on document creation, and providing access to employees on a need-to-know basis.
Plus, there will always be full transparency into the drafts, versions, and changes for each document to produce an accurate final audit-ready deliverable. So, if you’re ever asked to provide documents that show your compliance with a regulation or law, you’ll have evidence at your fingertips.
Conclusion
If you’re struggling with keeping track of all your company’s documents, you need to implement a document management strategy now. Every day that you go without one increases your risk of falling out of compliance, so take action right away and get organized.
