How a retention policy works
Retention policies typically define three key factors: retention period, how the items are disposed of, and the scope of information. The retention period clearly defines how long a record must be kept. Once that is established, the policy will lay out what happens after the retention period is over. Typically, a company will choose to permanently delete or archive the records. Lastly, the scope of the policy will define which systems, departments, or data types the policy will apply to.
For example, a company might retain financial records for seven years to comply with tax laws, then securely delete them. In IT systems like Microsoft 365, retention policies can automatically apply these rules to emails, documents, and chat messages, reducing manual effort and ensuring compliance.
