Data retention has been described as continued storage of an organization’s data for business reasons or compliance. An organization should retain data for a number of reasons. The major reason would be to comply with federal and state regulations. Yet another reason would be to cater the organization with ability to recover essential business data in event of site-wide data loss. It could be for any reason such as flood or fire. It would be pertinent to mention here that minimum regulations for records retention requirements would vary by state and by data type. However, it would be ranging from three years to permanent retention.
In order to make sure that all essential records have been stored properly, the IT administrators of the organization would look forward to working with legal team and departmental business owners of the organization for creating document retention schedule. It would be simply a set of guidelines describing which data would be archived and how long it would be kept. It would be pertinent to mention here that establishing a policy could reduce storage costs of the organization. It would enable documents that have been no longer required to move or delete files that would not be accessed commonly to lower-level storage space in an archive.
A good record retention schedule would organize the documents. It would be necessary for making it easy for searching and accessing when required. When the court inquires about the electronic records, the company should justify their compliance with the laws prior to sending out the request. It would not be sufficient to begin recording and keeping the database of these electronic files after the court order comes in. The major reason would be you incurring hefty fine. That has been the major reason why the act would urge the firms for having proper document retention schedule.