Ajax Privacy and Cybersecurity Lawyer, Rajen Akalu, of Akalu Law P.C., provides his thoughts on data governance retention as it relates to the movie “Eternal Sunshine of the Spotless Mind.”
One of my favourite Jim Carey movies is “Eternal Sunshine of the Spotless Mind.” In the movie, Carey’s character resolves to erase the memory of his ex-girlfriend. However, in the process of seeking to erase the painful experiences, he realizes that his cherished memories will vanish too. It’s a poignant reminder of how our past shapes us to become the person that we are, and the complexities of pain and joy that characterize human relationships. The movie got me thinking about how this compares to data retention policies in corporate environments.
Institutional memory is very different from human memory in that it lacks emotion. But since institutions are embodied, the data they retain is still affected by our human tendencies. For example it’s very common in companies to retain data far longer than is necessary. This is in part due to the fact that digital data storage is inexpensive, and it’s often cheaper to keep data rather than destroy it. Plus it might be valuable for data mining someday. Moreover, the compliance obligations that may attach to data that need to be considered. No one wants to be responsible for deleting a file erroneously. The problem is that retaining data beyond its use becomes a liability at a certain point. Such data is a treasure trove for potential cyber criminals and also makes searching more expensive and time-consuming when access requests are made. This is why a data retention policy is needed.
What Is a Data Retention Policy?
A data retention policy is a set of guidelines that determine how long an organization should keep various types of data and when it should be securely deleted. These policies help organizations comply with legal requirements, reduce risks, manage storage costs, and maintain customer trust.
Why Should Canadian Private Sector Organizations Care?
Here are several reasons why data retention policies are essential in the Canadian context:
- Legal Compliance and Regulatory Requirements
Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA) mandates that organizations retain personal information only as long as necessary for the purposes it was collected. Organizations must also securely dispose of personal data once it is no longer needed. Failure to comply with these requirements can lead to legal repercussions, financial penalties, and reputational damage.
Additionally, industry-specific regulations (e.g., in healthcare, finance, and telecommunications) may impose their own data retention and destruction requirements.
- Risk Reduction and Data Security
Retaining unnecessary data for too long increases the risk of breaches, leaks, and unauthorized access. Older data that is no longer needed may not be as well protected as current data, leaving it vulnerable to attack. A robust data retention policy minimizes these risks by ensuring that sensitive data is not kept longer than necessary.
- Cost Management
Data storage—whether physical or digital—comes with a cost. Retaining data that no longer serves a business purpose can result in excessive storage costs, including maintenance of servers and data management systems. A clear retention policy helps organizations identify and dispose of obsolete data, freeing up resources and reducing overhead.
- Enhancing Organizational Efficiency
Having a data retention policy in place streamlines data management processes. Employees know exactly how long to keep specific types of data and how to dispose of them securely. This clarity reduces confusion, saves time, and ensures consistency across the organization.
- Maintaining Customer Trust
In an era where data privacy is a top concern for consumers, demonstrating a commitment to responsible data management can enhance customer trust. Organizations that handle personal information with care and transparency send a strong message about their values and reliability.
Conclusion
A data retention policy is about decluttering an organization’s institutional memory, it’s a strategic asset for private sector organizations. By implementing clear, comprehensive retention guidelines, businesses can mitigate legal and security risks, reduce costs, enhance efficiency, and build more robust systems.
Rajen Akalu
647 299 5079
rajen@akalulaw.com
