Document destruction is significant for every business. From small to big enterprises, every organization produces a bulk of confidential information. However, not every piece of information you create is required for a lifetime. Hence, it is essential to practice document disposal.
But many companies delve into ineffective document destruction practices, eventually experiencing risks and severe consequences. To learn about the risks and consequences involved with the improper document disposal process, read the post.
Loss of Reputation and Client’s Trust
A business stores ample details and information about its clients. The customers provide these details considering a brand’s reputation and trusting it. No matter which industry you serve, your customers provide you with personal details like:
- Financial details, such as Credit card and Social Security numbers
- Addresses, name, and other personal details
- Personal medical details
You lose their trust if you fail to protect their information from misuse. A single breach overshadows all your commitment and efforts, ruining your reputation with your clients and the public.
Operational Inefficiencies
Another major risk involved with ineffective document destruction is the occurrence of potential problems that may result in inefficiency. When you don’t follow proper procedures and policies related to hard copies, they may get lost and float around the office. When you need it, you will not be able to find it.
It can impact your worker’s productivity, waste valuable time chasing the required data, lead to inefficient workflow, and cost you money. Moreover, it results in data loss, and if you lose previous records that haven’t yet been scanned into digital records, you may never recover the data.
Increased Cost of Destruction
If you think owning a shredder is a cost-effective option, it is not the case. Office shredders can cost a huge up-front cost.
It is expensive to maintain a shredder, and the machine may wear and tear due to paper jams or inadequate use, which may involve additional expenses.
Aside from unexpected expenditures and maintenance costs, an in-house shredder can consume valuable employee time as they have to shred hundreds and thousands of documents during office hours.
Regulatory Settlements and Non-Compliance Fines
A major consequence of inadequate document disposal is that your business may violate the regulatory requirements of statutes like FACTA, HIPAA, and Sarbanes-Oxley. It is your responsibility to store and destroy data as per these regulations.
When the data is improperly destroyed, it leads to the risk of incurring a substantial fine. Some fine fees are small, but many are high. The maximum fee amount for HIPAA non-compliance is around $1.5 million. Hence, you must not take it lightly.
The fine imposed depends on the severity of the breach. You are also forced to deal with civil legal suits from customers impacted by the breach. Such expenses are unpredictable and can cost you millions.
Internal Theft
Furthermore, when your documents are not properly destroyed, they could fall into the hands of thieves. These people can steal confidential data. Even if you have robust security measures to protect digital data, these hackers can steal access and result in theft.
It is necessary to protect your paper records during the destruction process. Relevant restrictions must be imposed on who can access the records and how they are filed.
The best way is to enact policies created to keep data safe from when it is printed until it is shredded, including shred all, clean desk, and locking bins policies in your office.
Safety Hazards
Yes, inadequate use of shredders can result in severe consequences related to safety. Many employees don’t know how to use a shredder or don’t pay full attention while using it. There is a risk of injury involved. The common type of injury from shredders is finger injuries, which can be a mild cut or a severe amputation.
These machines also pose a fire risk. If the machine is jammed with paper while on, it can result in fire due to excessive heat generation. It is vital to ensure your employees are trained to use a shredder to avoid such risks.
Providing safety training is an additional burden on the company. You must also offer refresher training, particularly if you get new machines. Every novel employee that starts at your company will require intensive training.
It poses an unnecessary financial burden on the business, which you can avoid by working with a professional. A professional shredding service is trained and experienced, managing and destroying all documents and avoiding the risks and hazards involved.
Ensure Effective and Safe Document Destruction
The risks and consequences of improper data disposal can be severe. The best solution is to hire an experienced and reliable services who deliver proper and efficient document destruction solutions for all types and sizes of companies.