Data retention

What is data retention?

Data retention is the practice of storing data in an organization's repository for a designated period. This data may include personal information, financial information, and health records. It can be stored in on-premises storage units, cloud storage, or a hybrid environment based on factors such as volume of data, compliance requirements, and geographical constraints. The primary objective of retaining data is to obtain valuable insights, like identifying market trends and anomalies to aid business operations, while conforming to applicable compliance regulations.

Why is data retention important?

Data retention is crucial for any organization. It serves as a framework to ensure legal compliance, operational efficiency, and risk mitigation. A solid data retention policy establishes clear guidelines for managing data, including its maintenance and secure disposal. Neglecting to dispose of irrelevant data for extended periods can lead to unnecessary accumulation and an expanded attack surface. Consequently, organizations should retain data only as long as it is required to meet the purposes for which it was collected, after which the data should be securely deleted using certified data wiping tools. To explore recommended data retention best practices you can implement within your organization, click here.

Here are the key benefits of data retention:

• Comply with regulatory guidelines

  The data retention process helps organizations meet legal and regulatory obligations. When paired with data minimization practices, it ensures that only necessary data is collected, stored, and retained. Adhering to these regulations helps organizations avoid hefty penalties, legal consequences, and reputational harm.

• Enhance customer experience

  By analyzing retained data such as past interactions and purchase history, organizations can personalize their offerings, enhance customer relationships, and deliver more effective solutions. This improved engagement leads to increased customer satisfaction and long-term retention.

• Improve operational efficiency

  Access to historical data equips employees with valuable insights from past projects, vulnerability assessments, incident details, and established workflows. This knowledge enables them to upskill, enhance the quality of their work, accelerate delivery timelines, and optimize processes.

• Facilitate forensic investigations

  In the event of a security breach, retained audit records can help identify the point of intrusion, mitigate damages, and rectify the root cause.

• Optimize storage costs

  Optimizing disk space allows companies to significantly reduce expenses related to storage hardware, cloud services, and server maintenance. This can be accomplished by regularly identifying and eliminating redundant, obsolete, and trivial data . Find out how much you could save on data storage costs using the ROT data calculator.

• Enable disaster recovery

  Retaining data helps when managing and recovering from system downtime, data loss, and server crashes. An effective recovery strategy can help organizations navigate adverse conditions and optimize business operations quickly.

Data retention periods for top compliance regulations

The length of time an organization should keep its data varies depending on the regulation. We've listed some of the most common regulations and their data retention period requirements in the table below.

How to create an effective data retention policy

To establish a robust data retention policy, follow these guidelines:

• Investigate regulatory and company requirements

  Research the regulatory standards in your industry or region, and identify specific requirements that are applicable to your business. This helps identify the various types of data your business handles and curate a retention policy based on the standards applicable for each data category.

• Delegate control over each data type

  Since different departments manage different types of data, it's crucial to assign dedicated personnel to ensure compliance with established guidelines. Clear protocols should be defined for when and how each data type is to be handled, including procedures for usage, retention, disposal, and backups.

• Establish a proper retention period

  Data retention timelines vary depending on the type of data being stored, and it's vital to define the retention periods for each data category. Decisions regarding data deletion and archiving should be made after consulting with stakeholders across all departments involved in data handling.

• Monitor, audit, and update the policy regularly

  Regularly monitor access logs and data life cycle activities, including archiving and disposal, to detect any security breaches or deviations. Conduct periodic audits to evaluate compliance with the data retention policy and highlight areas for improvement. To maintain compliance, stay informed about any updates to regulatory standards and adjust your retention practices accordingly.