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Why all the fuss?
Why all the fuss?
| Why all the fuss? |
 Why is there the need to record everything that goes on? Big brother really is watching us all. Why are there so many rules and laws governing this quite obscure subject? Surely what a business says in an email is their business.Since a couple of high profile business scandals over the last few years there has been a need for businesses to demonstrate they are being fair and honest with their dealings. Dealings not only with their clients and customers, but also with the government and other bodies too. In an attempt to minimize any further scandals, laws were enacted demanding much better accounting and accountability from organizations of all sizes. Government and business alike needed to regain public confidence in them and the way business is done with and for them. This needed comprehensive and robust action from all parties and was driven by legislation. The four main pieces of law are; The Federal Rules of Civil Procedure (FRCP) are a set of rules that govern court procedures for managing civil suits in the United States district courts. This is the basis for e-discovery requests and the need to keep secure and intact archives or electronic communication in case it is needed as evidence. The Sarbanes-Oxley Act of 2002 (SOX) also known as the Public Company Accounting Reform and Investor Protection Act of 2002 is legislation brought in by the Securities and Exchange Commission (SEC). Their main concern is the kind of information stored and how long. It states that pretty much all business records should be securely stored for at least five years. The Health Insurance Portability and Accountability Act (HIPAA) of 1996 require all organizations that manage Protected Health Information (PHI) to safeguard the security of medical records. That covers doctors, clinics, hospitals and insurance companies to name a few. Lastly and certainly not least is The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) rules. They expand on SOX and ensures organizations store all business communications and records for between three years and six years. This was enacted after the largest of the recent scandals. So apart from giving some very well paying jobs for hundreds of corporate lawyers, these measures were seen as important for cleaning up the way organizations did business. A comprehensive record of all dealings available to legislators and oversight committees is designed to act as a deterrent for any future disgraces being felt by business. Public opinion would be regained over time and increased international confidence would grow in the way the US did business, and in the security of US companies and organizations. The America to stay strong and remain a dominant force in the global marketplace, people have to have confidence in its institutions. But introducing this much legislation and oversight it was hoped that it would be viewed as a good step forward in increasingly credibility. This is turn would mean more global partners would want to do business with American organizations and in America itself. |