What is a Data Retention Policy?

A data retention policy is a set of guidelines that define how long and in what manner data should be stored and eventually disposed of. These policies dictate the types of data collected, the reasons for collection, the storage locations, the data format, and which data can be discarded.

Data retention policies help organizations with data management, regulatory compliance, legal defenses, disaster recovery, and providing easy access to mission-critical data for employees.

What are the key components of a data retention policy?

The key components of a data retention policy include the data collected, why it is collected, where it is stored, the format of the data, which types of data do not need to be kept, and how data should be stored according to legal and regulatory requirements. Data retention policies aim to manage data, comply with regulations, provide legal defenses, recover from disasters, and keep essential data accessible to employees.

Data retention periods can vary depending on the organization and industry, typically ranging from three to ten years. After the expiration of a data set's retention period, it can be deleted or moved to secondary or tertiary storage as historical data.

How can organizations create effective data retention policies?

Organizations can create effective data retention policies by categorizing and periodically auditing their data, identifying legal requirements and scheduling retention periods, implementing backups and backup testing, and defining data purging and disposal measures. These practices ensure that data is managed properly, complies with regulations, supports legal defenses, and helps with disaster recovery.

Adopting a data management platform like Secoda can enhance the process of creating and maintaining data retention policies. Secoda uses AI to help data teams manage data sprawl, scale infrastructure, control costs, enable data-driven decisions, and overcome issues like governance, observability, and lengthy setup and integration periods.

Top Tips for Developing a Data Retention Policy

Developing a data retention policy is essential for organizations to manage their data effectively, ensure regulatory compliance, and protect themselves legally. Here are some top tips for creating a successful data retention policy:

1. Categorize and periodically audit data

Organize data into categories and perform regular audits to ensure that data is accurately classified, maintained, and disposed of according to the established policy.

2. Identify legal requirements and schedule retention periods

Research the legal requirements for data retention in your industry and schedule retention periods accordingly. Be aware of any industry-specific regulations or regional laws that may apply.

3. Implement backups and backup testing

Establish a robust backup system and regularly test it to ensure that data can be recovered in case of a disaster or accidental deletion.

4. Define data purging and disposal measures

Outline clear procedures for purging and disposing of data once it has reached the end of its retention period. This ensures that data is removed securely and in accordance with regulations.

5. Train employees on data retention policies

Ensure that all employees are aware of and understand the data retention policy, as well as their individual responsibilities in adhering to it. Regular training sessions can help reinforce the importance of proper data management.

6. Monitor and enforce the policy

Regularly monitor compliance with the data retention policy and enforce it consistently. This includes addressing any issues or violations promptly and updating the policy as needed.

7. Leverage data management platforms

Utilize data management platforms like Secoda to streamline the process of creating, maintaining, and enforcing data retention policies. These tools can help automate data discovery, documentation, and request management.

Master Your Data Retention Policy and Stay Compliant

Understanding and implementing an effective data retention policy is crucial for organizations to manage their data, ensure compliance, and protect themselves legally. By following the tips and best practices outlined above, organizations can create successful data retention policies that not only meet regulatory requirements but also support their overall data management strategy. Remember to leverage data management platforms like Secoda to streamline the process and stay compliant in an ever-evolving regulatory landscape.

Key Takeaways for Data Retention Policies

• Categorize and periodically audit data
• Identify legal requirements and schedule retention periods
• Implement backups and backup testing
• Define data purging and disposal measures
• Train employees on data retention policies
• Monitor and enforce the policy
• Leverage data management platforms like Secoda

By following these guidelines and best practices, you can create a robust data retention policy that supports your organization's data management goals and ensures regulatory compliance.