The Importance Of Information Management

All organizations are expected to create and retain records as a result of their activities and as proof that transactions have taken place. In the context of financial institutions in Malaysia the requirement for creating and retaining records is clearly stated in several Acts and Regulations.It is the duty of local financial institutions to comply with these regulations as negligence could invite problems especially if an organization is engaged in litigation.It is the aim of the study to examine whether the structure of legal language contributes to the seemingly low compliance with such Acts and Regulations.

It has been widely accepted that information is now regarded as an asset equivalent to capital, manpower and physical assets such as land and buildings. It is one of the most vital strategic assets any organization possesses. Therefore, it is interesting to find out whether recorded information management (i.e. records management) is given high priority by organizations. Regulatory requirements recently make managing information both a business priority and a legal obligation that demand the attention of organizations.

According to William (2002), to meet the increasingly stringent and complex legal, regulatory and operational requirement for managing records, there must be significant improvements in the process by which organizations manage all of their records. As it is now, certain important and necessary “enablers” and “links” are missing in many organizations. Umi (2007) identified that most organizations in Malaysia do not have policy to direct practice despite the fact that policies help organizations determine the overall course of action to ensure that the goals and objectives of a records management programme a...

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...of records and realize that they have to retain records in compliance with the federal Acts and Regulations. The study also reveals that some financial institutions in Malaysia (10 per cent) feel that it is necessary to have a records management programmer; however, the need is not pressing. The majority feel it is essential to have records management in place though some admit not taking any action towards it. This attitude is seen to have a connection to another factor, where respondents had hardly heard of any failures, business closures, being hit by disaster or being penalized for not managing records. Furthermore, it is not alarming that vital records become the interest of their competitors (50 per cent). Of the respondents 20 per cent still do not feel motivated and under pressure to embark on records management practice after completing the questionnaire.