The USA faced an economic and business downturn with the collapse of the US housing market, relaxed government regulation and problems related to governance in the financial sector. It led to the financial crisis the world experienced and felt since 2007‐2008. This situation cost many people many things especially the Americans their jobs and trickled down to other businesses and economies the world over at a time of globalization. Further the “crisis exposed some key issues in the management of records.” It is cited as an example to show that many financial institutions offered home loans without ensuring thorough documentary evidence about the borrower's repayment affordability. This is explained in the opening chapter of the book. Here‐in it is stated that “when the US housing bubble burst, mortgages that underpinned” the particular derivative products from the non repaid loans that were sold on to “investment banks became toxic assets making the values plummet financial institutions to collapse and the financial markets seized”. The introductory chapter proceed to show that the “robust systems for record creation and keeping are a crucial element of a financial institution's operations and its ability to manage risk and withstand adverse market conditions.”
The book thus enters into the main focus and the central subject that is records management in the financial markets in a global context. The authors have laid an absolute weight behind the importance of record management highlighting a recent crisis that reshaped the world economy. The arguments presented in both introductions, one to the records management and another to the global financial markets, are in a very logical sequence. The details put forward enable the readers, even if they are not players in a financial market or in the records management field to understand what records management is and the importance of its sustainability in the financial sector. Most importantly the challenges and consequences of poor records management and its negligence in financial sector are addressed.
The text is studded with details drawn from all angles of financial markets and records management and archives. The book's nub is that since the global financial sector is being increasingly called on to demonstrate accountability and responsibility for all the activities “the ready availability of such evidence is essential”.
The Finance sector has drawn a lot of flak during the recent past, especially after 2008 housing crisis that lead to an economic and financial slowdown. The crisis affected the business and economy highlighting governance and regulatory issues bringing in the records management factor into a renewed focus.
This book does not only provide and appraisal of the above challenges and processes but offers explanations by detailing how to overcome them. The authors drive these points with a sense of urgency. The challenges posed in this area are emerging in financial services such as investment banking and other services. Hence the book, besides taking the reader through “what, why and how” of records management also probes to show where it is really necessary. The book deals with the two disciplines; Records Management and Financial Markets through the entire book which is divided into four main sections.
Regulatory and legal compliance
Contributions in this section from chapters 2 to 6 reflect how important it currently is for an effective legal and regulatory discipline in global financial institutions. Records management techniques have now been adopted and assimilated in USA, Europe and the Asia and Pacific and address issues related to conflicts of laws in multiple jurisdictions.
This first part clearly shows that record keeping obligations are numerous and conflicting for the Financial Sector Institutions, needing policy formulation for retention of records which remains a challenging task in today's regulatory environment, and necessitating alertness to the various legislatures. There are vignettes of financial sector legislatures in the USA to show the impact of extra jurisdictional reach in the USA as well as the information privacy in the USA. Further the fourth chapter in this section gives details on the common regulatory framework that has been established in the EU, with a case study on UK and examples from Germany, Italy and the Netherlands.
The importance of data, its protection, management of information systems, and communication, transparency and sharing of information whilst maintaining a high degree of confidentiality is discussed at length with reference to Asia and Pacific.
Balancing risk and return
Chapters 7 to 10 concentrates on financial services, its operations and the problems and issues with regard to records management ensuring a balance in risk and return.
Ensuing chapters focus on a framework for records management related to managing risk, the technological developments and impacts, and managing records in strategic investment moves pursued by global financial sector institutions such as acquisitions and mergers. Here the authors show the rationality of integrating records of the assets that have been acquired, policy procedure, regulation formulation and engagement of human resources. Records management is a key factor in effective mergers and acquisitions. Financial Institutions must decide how it can maintain a competitive advantage by managing its data and records in a most cost effective way and have an adequate plan to' know their data” and its effect on records management.
Litigation related issues
Part 3 of the book focuses on the fact that litigation is central to many areas and financial sector institutions should be able to justify litigious matters by producing records promptly when regulatory charges are brought against such institutions. The question that comes up with regard to electronic records and their authenticity in legal proceedings need to be substantiated. Hence chapters 11 to 12 in this section vividly covers authenticity and evidence based records and digital records.
Record keeping approaches
The final section, part 4 explores approaches to records maintenance to provide sound and effective records management. A strong policy framework, embedding records management in business processes through systems, standards and best practice methods and the development of a system to incorporate an archival system for corporate memory are shown as foremost requirements in institutions grappling with regulatory and governance issues in the financial sector environment globally. Enter chapters 13 to 15 and the reader will find the deliberations on a policy framework at a global level, systematized integration of records management into financial activities and establishing an institutional memory component through the development and the maintenance of an effective archival repository. That is the final requirement in this entire exercise of managing records in a global financial market environment.
The book has been written and published at a time of world economic uncertainties and recessions with a wake up call to governments, regulators and financial market participants. In particular, attention has been focused on the reasons for the failure of household financial institutions. It is an opportune time to examine these aspects and relate the importance of records management to support diligent business activities and accountability. It clearly shows how the documentation works and why financial managers need to be aware of such a process.The editors are well established records management professionals with long years of experience in this area and financial sector. The authors are introduced to the reader through the brief biographical note of each contributor after the overview of the series on records management.
The editors compiled fifteen chapters with contributions by seventeen authors also of equal professional bearing from other disciplines to document major aspects of the two disciplines. This is an invaluable tool for those engaged in information related work such as records managers, archivists, and information professionals working in the financial sector, risk and compliance personnel those from the information technology field, corporate governance personnel, and regulators, senior and corporate managers. The contents page itself shows its value to the information services professionals, academics and business and finance sector people.
Despite its length and detail there is a brisk movement in a systematic sequence with introductions and the discussions and chapter conclusions. This is a reliable tool that also can be used as a standard reference on the subject.
A list of abbreviations, an index, notes and references in the book is useful for the reader. However, even though the technical terms used are explained in many instances, the absence of a glossary of terms is an oversight that could be rectified in any revision of this series.
Types of financial institutions, the functions and activities, products and services and the records to be preserved are effective and helpful to comprehend diverse issues pertaining to regulatory and governance of financial activities with Records Management. It is a book that should not missed by professionals in the information science and the financial sector.
