Businesses today are processing more data than the mind can even comprehend. Eight years ago, the average company managed 162.9 terabytes (TB) of data. In 2024, 2.5 quintillion bytes worth of data are generated each day. It’s hard to get your head around.
With so much data generated and added by the second, managing it becomes exponentially challenging — especially when structured and unstructured data is distributed across different environments: on-premises, cloud, or both (hybrid).
That’s where the concept of a data retention policy comes in. For business, effective data retention is primarily a regulatory requirement but it also plays a crucial role in cost management, operational efficiency, and data security.
Why is a data retention policy important?
A well-documented and communicated data retention policy should be viewed as a foundational practice for organizations. It helps establish a clear framework for how long data should be stored, when it should be archived, and when it should be securely deleted.
With an effective data retention policy, organizations benefit in three key ways:
- Regulatory compliance: Laws like GDPR, HIPAA, and CCPA require organizations to manage personal and sensitive data carefully and enforce strict guidelines on data retention and deletion. Â
- Cost and resource efficiency: Storing vast amounts of data indefinitely is neither practical nor efficient. A well-defined data retention policy helps organizations reduce storage costs, manage resources, and prevent data sprawl by ensuring only relevant information is retained.Â
- Data governance and security: Proper data retention also helps with data governance by clarifying where data resides, who has access, and how it’s protected. Strong data governance means that sensitive data remains secure throughout its lifecycle, mitigating the risks associated with unauthorized access or data breaches.Â
Meeting today’s regulatory compliance standards
In a regulatory landscape that’s more stringent than ever, adhering to data retention standards is an increasingly difficult requirement for organizations.
Here are some of the more prominent regulations to be aware of:.
- GDPR (General Data Protection Regulation) – Protects personal data and privacy in the European Union, with strict guidelines on data retention, processing, and deletion.Â
- CCPA (California Consumer Privacy Act) – Provides California residents with rights over their personal information, including the right to know, delete, and opt out of data sales.Â
- HIPAA (Health Insurance Portability and Accountability Act) – Sets standards for the protection of sensitive patient health information in the U.S., including specific retention and privacy requirements for healthcare organizations.Â
- SOX (Sarbanes-Oxley Act) – Requires financial record-keeping and transparency for public companies in the U.S., mandating strict controls on financial data retention and security.Â
- PCI DSS (Payment Card Industry Data Security Standard) – Governs the protection of cardholder data, with specific requirements for securely storing, processing, and transmitting payment information.Â
- FERPA (Family Educational Rights and Privacy Act) – Protects the privacy of student education records in the U.S., with guidelines on the retention and handling of student information.Â
- GLBA (Gramm-Leach-Bliley Act) – Enforces data privacy and protection requirements for financial institutions in the U.S., ensuring customer financial information is securely managed and retained.Â
- ISO 27001 – An international standard for information security management systems (ISMS), requiring organizations to manage data security risks, including data retention practices, to meet certification standards.Â
- NIST (National Institute of Standards and Technology) Frameworks – Provides guidelines on cybersecurity practices, including data protection and lifecycle management, often used by federal agencies and contractors.Â
Four keys to an effective data retention strategy with Concentric AI
Creating a successful data retention strategy requires a focus on lifecycle management, compliance, and proactive security through data lineage and accessibility. The approach should include all these essential elements so data retention can be streamlined across all types of environments.
Automated data lifecycle management
Concentric AI simplifies data retention and deletion by implementing automated policies aligned with compliance standards like GDPR and HIPAA. Our process ensures sensitive data is accurately identified, securely retained, and inaccessible to unauthorized users throughout its lifecycle, supporting comprehensive regulatory adherence.
Compliance
In addition to automated policies, Concentric AI provides real-time monitoring to detect and mitigate potential compliance risks. This continuous oversight allows organizations to identify gaps, such as outdated permissions or unencrypted sensitive data, and address them before they become regulatory issues.
Proactive data security
Data retention involves storing sensitive information for extended periods, which only makes proactive security more important. Concentric AI’s solution includes automated risk assessment and anomaly detection, helping organizations prevent unauthorized access, data leaks, and security incidents. By monitoring data access and applying secure storage practices,
Concentric AI protects long-term data and defends it against potential attacks and threats.
Data lineage and accessibility
Tracking data lineage across its lifecycle, Concentric AI enables organizations to maintain detailed records of data origin, movement, and transformations. With detailed visibility, retained data is organized, accessible, and audit-ready, making retrieval straightforward for operational needs, legal reviews, or compliance checks.
Our solution also provides intuitive tools to trace and verify data paths, ensuring that historical data can be validated and verified against original sources. This level of traceability is essential for organizations undergoing frequent audits or compliance reviews, as it allows data to be confidently presented and justified.
How does Concentric AI protect data?
Concentric AI’s data security governance solution was created so that organizations can discover and classify their data, assess it for risk, and remediate the risk.
Here’s how we do it:
Data discovery and classification: Concentric AI autonomously scans and categorizes data based on sensitivity and business impact, ensuring that all data—both structured and unstructured—can be managed according to retention policies.
Risk assessment and remediation: With built-in AI-driven risk assessment, Concentric AI can identify potential security risks associated with retained data and automate remediation actions. This functionality ensures that sensitive information remains protected, even in long-term storage.
Compliance and audit support: Concentric AI provides comprehensive compliance reports and audit trails, making it easy for organizations to demonstrate adherence to regulatory standards. This support streamlines audit processes, offering a clear view of data access, lineage, and security controls.
To sum up, an effective data retention policy is a strategic approach that supports data governance, reduces costs, and enhances security. Concentric AI’s data retention solutions empower organizations to automate lifecycle management, maintain regulatory compliance, and protect valuable data from potential threats.
With Concentric AI, organizations can take data retention to another level — from a regulatory task into a proactive data governance strategy that drives operational excellence and provides peace of mind.
Get in touch today and see, with your own data, how Concentric AI helps manage and protect data throughout its lifecycle.
