Cloud based Document Retention Policies

There are many benefits associated with storing critical data in the cloud. For example, you can prevent it from being damaged onsite in a fire or other destructive event. You may be able to store it without the need to take up valuable physical space in your office, and you can easily access it or search through it from any location where you have an Internet connection. However, despite these and other incredible benefits, many businesses have not yet migrated into the cloud. A primary concern relates to the security of data.

The Liability Issue
When security is breached and valuable or sensitive data is stolen, the company may be held liable for any damages that customers or clients incur as a result. This is because the companies are expected to take reasonable steps to safeguard private data from theft and other issues. In some cases, the data providers can also be held liable. It is important to understand that storing files in your physical office space is not necessarily a safer option than storing the information in the cloud. After all, your office could be broken into just as a network could be hacked.

The Ability to Destroy Data
Data or document destruction is relevant for financial firms and for those who work in a wide range of other industries. While you may be required to store some documents on-site for several years or longer, there will come a time when you need to destroy documents that are no longer needed. Destroying physical data stored in your file cabinet can take a long time and may require substantial cost. More than that, there is always a risk that you will destroy the wrong files or that some files will not be destroyed in a timely manner to reduce risk. Through cloud-based storage of your valuable data files, you can easily search through your saved data files to find the appropriate ones that need to be destroyed. With a few keystrokes, all of the files that you wish to get rid of can be permanently removed from the computer.

The Need for Clients to Sign Disclosures
Your clients should understand how you plan to store and safeguard their sensitive information. More than that, they should agree that the measures you are taking are reasonable. They should not hold you liable for any breaches because you are taking reasonable measures to safeguard their information. It may be wise to work with your lawyer to draft a disclosure. Each client you work with can sign the disclosure, and this may reduce your exposure to liability going forward.

The cloud presents businesses in a wide range of industries with substantial benefits, but many companies are still on the fence about making the transition. As you can see, there are various steps that you can take to take advantage of the cloud while minimizing your risk associated with it. Explore these tips more carefully today, and you may decide to begin your data migration soon.

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