Leonidas is reviewing data retention policies. How can a data retention policy reduce liabilities?

Data retention policies can reduce the number of old logs and other files that may need to be produced during a legal case. That can reduce organizational risk, but retention policies need to be in place well before a legal hold is filed. Reducing storage in use does not reduce liability, but it can reduce financial costs, and data retention policies don't tend to limit the number of classifications in use. Legal penalties are not impacted by a retention policy.