What does data retention policies govern?

Data retention policies are specifically concerned with how data and records are managed and stored over time, particularly in relation to internal operations and legal requirements. These policies establish the guidelines for how long different types of data should be retained, when they should be archived, and how they are to be disposed of properly once they are no longer needed. This ensures compliance with regulations and helps in maintaining an organized and efficient record-keeping system.

In many organizations, data retention policies are crucial for efficient operations, legal compliance, and risk management, as they dictate how records related to transactions, customer interactions, and other critical information are handled throughout their lifecycle. Such policies are often developed in accordance with applicable laws and regulations that may require that certain records be kept for specific durations or be destroyed securely once their retention period is over.