In today’s digital age, managing data has become an indispensable aspect of any organization’s operations. Yet, amidst the rush to preserve every piece of information, businesses often find themselves drowning in a sea of clutter, or worse, grappling with compliance issues. Understanding the right and wrong ways to employ retention schedules can be the guide through these murky waters, ensuring data practices remain both efficient and legally sound.
Understanding what retention schedules are and aren’t
A retention schedule is a systematic plan that outlines how long specific types of information should be retained by an organization, and what actions should be taken at the end of their respective retention periods. It serves as a guide for managing records and data throughout their lifecycle, from creation to final disposal. Properly implemented, it serves as the north star for the longevity of information storage and proper procedure for disposal once retention deadlines have been met.
While retention schedules play a crucial role in organizing data management practices, they have limitations and need to be complemented with other processes and expertise to ensure comprehensive data governance and compliance. A few things retention schedules won’t do:
- Determine the quality of data
- Automatically ensure compliance
- Substitute for counsel from certified information professionals
- Substitute for data security measures
- Address future changes to compliance and regulatory policies
- Eliminate data retention risks
Utilizing a retention schedule effectively is crucial for managing and disposing of business information appropriately. To create a retention schedule, several steps of information analysis are typically involved. Once outlined, implementing retention policies becomes integral to the protection of information across its lifetime. Let’s look at the correct ways to implement a retention schedule:
- Develop a comprehensive schedule: Organizations should look to create a retention schedule that covers all types of information generated or received by the business, considering both physical and digital formats. Make sure to include various categories of data, such as financial records, employee files, customer data, contracts, and other relevant documents.
- Understand legal and regulatory requirements: Businesses should familiarize themselves with applicable laws, regulations, and industry standards governing data retention. Ensure that your retention schedule aligns with these requirements to maintain compliance. Ultimately, consulting with legal and information professionals to ensure accuracy and relevance will aid in this endeavor.
- Categorize information: Classify business information into different categories based on the type of data, its sensitivity, and the legal or business requirements for retention. This helps determine the appropriate retention periods for each category.
- Document retention periods: Clearly specify the retention periods for each category of data in your retention schedule. These periods should be based on legal requirements, business needs, potential future use, and any industry-specific considerations. Ensure that your retention periods are up to date and reflect the most recent regulations or changes in your business environment.
- Assign responsibility: Clearly designate individuals or teams responsible for managing the retention schedule. Ensure they understand the schedule, its purpose, and their roles and responsibilities in adhering to it. This includes overseeing the implementation, monitoring, and enforcement of the retention periods.
- Regularly review and update: Conduct periodic reviews of your retention schedule to ensure it remains current and compliant. Adjust the schedule as necessary to accommodate changes in laws, regulations, or business requirements. Document any revisions made and communicate them to relevant stakeholders.
Remember, it is advisable to seek advice and involve relevant stakeholders in the creation, implementation, and maintenance of your retention schedule to ensure it effectively meets legal requirements, business needs, and industry standards. Otherwise, businesses may find themselves utilizing a retention schedule improperly. Let’s look at how that can occur:
- Lack of clarity and specificity: If your retention schedule lacks clear guidelines or specific information regarding retention periods, it can lead to confusion and inconsistent practices within the organization. Ambiguity may result in non-compliance or the unnecessary retention of data.
- Failure to communicate and train: It is crucial to communicate the retention schedule to employees and provide training on its implementation. If employees are unaware of the schedule or do not understand how to follow it, there is a higher risk of non-compliance or mishandling of data.
- Neglecting technological advancements: Ignoring the impact of evolving technology on data storage and management can lead to outdated retention practices. Stay updated on new technologies, data storage options, and their implications for data retention to ensure your schedule remains relevant.
- Disregarding legal and regulatory changes: Failing to monitor and adapt retention schedules to reflect changes in laws and regulations can result in non-compliance. Stay informed about any legal or regulatory developments relevant to your industry and adjust your schedule accordingly.
- Inconsistent application: Ensure that the retention schedule is consistently applied throughout the organization. Inconsistencies can lead to data retention gaps, data loss, compliance issues, or legal liabilities.
- Over-reliance on the retention schedule: While a retention schedule is a valuable tool, it should not be the sole determinant for data retention and disposal decisions. Consider other factors such as the purpose of data collection, data minimization principles, and individual data subject requests when making retention decisions.
By conducting a thorough analysis of the information, legal requirements, and business needs, you can develop a well-defined and compliant retention schedule that aligns with your organization’s objectives and obligations. The goal should be to find the right balance between safeguarding essential information and avoiding unnecessary data hoarding.