On Nov 6, 2012, at 12:01 AM, RECMGMT-L automatic digest system wrote:

> From: Glen Sanderson <[log in to unmask]>
> Date: November 5, 2012 10:54:04 AM EST
> Subject: Re: Stock certificates feared ruined by Sandy - FT.com

>  I much prefer to have the gold in a place where I can reach it. So when you get a call from one of the places that wants to maintain your investment in a vault somewhere refer to this posting.


Having worked in the Security Industry for 38 years and in the fireproof vault industry for the last 28 of that time, I can tell you that the perception of how many things are stored in vaults versus reality is a huge misconception.

When we visit many companies, we see that the way they store things is one step above a broom closet. The reality is that over 80% of the things that you think are in a vault simply are not. The same is true of insulated file cabinets.  People say, "I don't need a vault because our file cabinets are fire protected."  I tell them "Where did you get that idea? These are just metal file cabinets.  There is no listing, no label."

I have three competitors that sell a metal wall board and place a stairwell type door on it and sell it as a vault.  But this is even a small percentage.  Most of the things you would consider vault worthy are in a locked gypsum board closet or at best a concrete block closet with a metal door. But you look up and there is a drop ceiling as the roof of the room.

Think how few times you hear of a major destructive event and then read "But nothing was damaged because the vital assets were protected in a vault."  There is an estimate that Vital Records are 1% to 2% of the total records volume on average, but I would say that less than 10% of those reside in a vault or have a solid redundant storage plan.

ERM was developing as a model for creating redundant storage when you consider paper in offsite storage and back up tapes.  But that no sooner started to be worked out when Big Data knocked the pins out of that with their Cloud model.

There is massive damage in the East and you will never hear about much of it because the owners will be embarrassed that they did not really protect it and of course, their insurance will not include "Valuable Papers" coverage. The damage is NYC and NJ will be unprecedented from a business records model.  Thank goodness, the Cloud had not achieved dominance as Big Data hoped.  The offsite data storage industry has functioned amazingly well and they made recovery and business resumption routine as they have done for 30 years.  They are really the one Industry where Vaulting records still means something.


Hugh Smith
FIRELOCK Fireproof Modular Vaults
[log in to unmask]
(610)  756-4440    Fax (610)  756-4134
WWW.FIRELOCK.COM


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