Which of the following is crucial for reducing litigation risk?

The implementation of a records management system is essential for reducing litigation risk because it establishes a systematic approach to storing, retrieving, and disposing of documents and records. Proper management of records ensures that important information is preserved and can be accessed when needed, particularly in legal situations. This system also helps organizations comply with laws and regulations regarding record retention, which can mitigate legal exposure.

Additionally, a robust records management system supports the organization's defense in case of litigation by providing evidence to substantiate claims or actions taken. By maintaining comprehensive and orderly records, an organization can effectively demonstrate its adherence to policies and regulations, thus lowering the potential for litigation related to improper documentation or record-keeping practices.

While regular audits, employee training sessions, and annual performance reviews are valuable components of an organization’s overall operations and compliance, they do not directly address the critical need for organized and accessible records specifically designed to prevent litigation risks.