Data retention policies outline how long certain information should be kept and the reasons for deleting data. Having a clear data retention policy is crucial for any organization to comply with regulations, optimize storage costs, and improve data hygiene.
Why is a data retention policy important?
There are several key reasons organizations need comprehensive data retention policies:
- Compliance – Regulations often stipulate how long certain data should be retained. Failing to follow retention rules can result in hefty fines.
- Limiting storage costs – Keeping data indefinitely is expensive. Deleting unnecessary data reduces storage needs.
- Security – Less data means a smaller attack surface for hackers. Getting breached can damage an organization’s reputation.
- Privacy – Individuals generally want their personal data handled carefully and deleted when no longer needed.
- Efficiency – Too much outdated or trivial data slows down workflows and makes finding important information harder.
In summary, thoughtful data retention keeps organizations compliant, cost-effective, secure, privacy-conscious, and efficient.
What regulatory requirements impact data retention?
Various laws and regulations determine appropriate data retention periods. Some key examples include:
General Data Protection Regulation (GDPR)
- GDPR applies to EU residents’ personal data.
- Data must be kept only as long as needed to fulfill its original purpose.
- Once that purpose is achieved, data should be deleted.
Health Insurance Portability and Accountability Act (HIPAA)
- HIPAA governs protected health information (PHI) of US patients.
- PHI data retention is typically 7 years from its creation or last use.
Sarbanes-Oxley Act (SOX)
- SOX regulates financial data for public US companies.
- Records relevant to audits must be kept for 7 years.
Nearly every industry vertical has rules about maintaining and destroying records. Failing to set proper retention schedules can lead to sanctions.
What are common data retention policy elements?
While specifics vary, standard data retention policies cover the following areas:
Retention schedules
These tables or matrices specify how long different data categories should persist based on regulatory and business needs. Schedules help employees understand requirements.
Data mapping
This exercise identifies what types of data the company collects, processes, and stores. Mapping enables creating tailored schedules.
Scope
The policy should clarify what systems, applications, repositories, and data formats it applies to.
Roles and responsibilities
This section designates which teams own implementing and enforcing the retention program.
Retention and destruction procedures
Detailed protocols for how data gets retained and deleted, including employee training.
legacy data handling
Guidance for assessing and managing data predating the new policy.
Exceptions and legal holds
How retention gets customized for certain data or events like lawsuits.
Auditing and oversight
Monitoring adherence to the policy and correcting any issues discovered.
| Data Type | Retention Period |
|---|---|
| Customer emails | 2 years |
| Financial records | 7 years |
| Marketing campaign data | 6 months |
This table shows an example retention schedule covering different data categories.
How can organizations implement data retention policies?
Turning a data retention policy from words on paper into organizational reality involves several steps:
Get stakeholder buy-in
Ensure leadership, legal, IT, and key business units endorse the policy. Their support is vital for adoption.
Build retention into applications
Configure systems to retain and delete data according to the policy automatically whenever possible.
Classify data
Organize information into defined categories that map to retention rules. Classification enables policy automation.
Review continuously
Audit data types and retention periods regularly. Update as regulations, technology, and business needs evolve.
Destruction procedures
Safely and completely destroying data is just as important as storing it initially. The policy should mandate secure data deletion.
Protect legacy data
Take special care to identify and properly retain data predating the retention program.
Document everything
Meticulously record retention schedule updates, legacy data handling, data destruction, and other key tasks.
What retention periods are common for certain data types?
Appropriate retention timeframes often depend on the data’s purpose and governing regulations. Below are typical durations for some common information:
| Data Type | Typical Retention |
|---|---|
| Financial records | 7 years |
| Contracts | Life of contract + statute of limitations |
| Tax documents | 7 years |
| Payroll records | 7 years |
| Server/system logs | 60-90 days |
| Website visitor data | 6 months |
This table provides typical retention periods for some common organizational data types.
What are best practices for data retention policy creation?
Crafting an effective data retention policy that meets both compliance and business goals rests on several best practices:
- Collaborate across teams like legal, IT, security, and key business units.
- Consider regulations but also operational needs when setting retention durations.
- Classify data thoughtfully based on use cases and governing rules.
- Map data locations and lifecycles to inform policy scope.
- Automate retention and deletion mechanisms when possible.
- Build in flexibility to accommodate unanticipated events.
- Audit regularly and update the policy as needed.
- Document processes thoroughly.
What role do data archiving and backups play?
Data archiving and backups help balance retaining data for operational and compliance needs with deleting unnecessary information:
Archiving
- Moves data out of primary systems while still retaining it.
- Less costly and more secure than keeping everything online.
- Allows deleting data from operational systems per retention schedules.
- Archived data still needs retention policies.
Backups
- Serve disaster recovery rather than long-term retention.
- Should have much shorter retention than archives.
- Test restores periodically then delete oldest backups.
How can data retention improve organizational efficiency?
Properly retaining and disposing of data enhances productivity and analysis. Benefits include:
- Lower storage costs by deleting unnecessary data.
- Better system performance with less overloaded databases.
- Improved data quality since outdated info gets removed.
- More efficient workflows without irrelevant legacy data.
- Uncluttered data lakes make analysis and AI more effective.
In summary, keeping only high-value recent data enables organizations to fully utilize their information.
Conclusion
Creating and implementing a thoughtful data retention policy delivers numerous organizational benefits. Properly retaining necessary data and disposing of the rest helps with regulatory compliance, cost savings, legal obligations, privacy, and data hygiene. The specifics of an effective policy vary between companies but should address scopes, schedules, procedures, and continuous auditing at a minimum. With proper stakeholder participation and buy-in, a retention program can greatly improve efficiency and reduce risk.
