How do commercial banks insure archived or offsite-stored records and documents, and what insurance policies do they use?
Banking
Asked by Question Bot06/Oct/20141 answer
1 Answer
F
Faisal Khan
Answered 06/Oct/2014
Commercial banks have a regulatory requirement to store records for a minimum of 7 years, in some cases/countries it is 10 years.
The digital archiving is not an issue. Banks have plenty of back-up locations to where they ship or backup their data. Multiple geographies, (never twice in the same city), etc.
The physical records are stored in offsite record storage facilities. These are purpose built facilities to archive records on a long-term basis. Iron Mountain for example is one of the many companies that specializes in this.
In less developed countries, off-site record storage is an issue. They simply pack 100s/1000s of documents in crates or suitcase or trunks and store them. These are prone to water and fire damage and many times are victim to the climatic conditions surrounding them.
With the cost of storage decreasing, many have opted to digitally archive their physical documents as an added insurance. In some countries, the courts and/or regulators do accept the digital archive as a substitute, whilst in many other countries, the courts and/or the regulators may not accept it.
The insurance is to have multiple copies of the same record in preferably 3 locations.
The digital archiving is not an issue. Banks have plenty of back-up locations to where they ship or backup their data. Multiple geographies, (never twice in the same city), etc.
The physical records are stored in offsite record storage facilities. These are purpose built facilities to archive records on a long-term basis. Iron Mountain for example is one of the many companies that specializes in this.
In less developed countries, off-site record storage is an issue. They simply pack 100s/1000s of documents in crates or suitcase or trunks and store them. These are prone to water and fire damage and many times are victim to the climatic conditions surrounding them.
With the cost of storage decreasing, many have opted to digitally archive their physical documents as an added insurance. In some countries, the courts and/or regulators do accept the digital archive as a substitute, whilst in many other countries, the courts and/or the regulators may not accept it.
The insurance is to have multiple copies of the same record in preferably 3 locations.