Which Data Policy Governs Archiving Customer Transactions for Compliance?
An administrator assists the legal and compliance team with ensuring information about customer transactions is archived for the proper time period. Which of the following data policies is the administrator carrying out?
Community Votes
100% of anonymous learners picked answer B. Votes are pick records left by other test-takers — they are not the verified answer.
Community Insight
It tests recognition of compliance-driven archival versus active data handling, where candidates often confuse long-term preservation with temporary storage or inventory tracking.
This question evaluates understanding of data lifecycle management, specifically how organizations legally preserve records for mandated durations. Community consensus unanimously confirms that maintaining transaction data aligns with retention policies driven by regulatory requirements.
Candidates frequently select 'Inventory' or 'Transfer' by misinterpreting 'archived' as cataloging assets or moving data, rather than recognizing the legal mandate for time-bound preservation.
Community Discussion (4 comments)
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Expert Analysis
Core Concept: Data Retention Policies
The scenario describes an administrator collaborating with legal and compliance teams to archive customer transaction data for a mandated duration. This directly maps to a data retention policy, which dictates how long specific information must be preserved to satisfy regulatory obligations, legal holds, and audit requirements. As noted in community discussions, frameworks like the Sarbanes-Oxley Act (SOX) and financial compliance standards strictly enforce these timelines, making retention critical for avoiding penalties and ensuring records remain accessible during investigations.Why Other Options Are Incorrect
- Compromise: Refers to a security breach or unauthorized access event, not a governance policy.
- Analysis: Involves examining data for insights, threat hunting, or performance metrics, not mandated archival.
- Transfer: Relates to migrating data between systems or locations, ignoring time-based compliance rules.
- Inventory: Focuses on cataloging and tracking data repositories or IT assets, rather than enforcing preservation schedules.
Official Reference
Exam Strategy
When encountering data lifecycle questions, immediately scan for compliance-related keywords like 'legal,' 'audit,' or 'duration' to prioritize retention over technical operations. Map the described action to the specific phase of the data lifecycle (creation, storage, usage, archival, destruction) to rapidly eliminate distractors and confirm the correct policy.
Related Analysis
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