Define "data retention policy."

A data retention policy is fundamentally a set of guidelines that defines how long sensitive data should be retained, as well as the procedures for securely disposing of that data once it is no longer needed. This policy is crucial for compliance with various regulations and standards, including those outlined in the PCI DSS, which mandates that data should not be kept longer than necessary to achieve the intended purpose.

The correct answer emphasizes the importance of both retention and secure disposal of sensitive data, ensuring that organizations not only store data responsibly but also mitigate the risks associated with data breaches by properly handling data that is no longer relevant. This approach balances the need for data availability with the imperative of protecting sensitive information.

In contrast, other options fail to encapsulate the essence of a comprehensive data retention policy. While the notion of indefinite storage or an outright prohibition against deletion may seem like they could safeguard data, such practices can introduce significant risks, including violations of privacy laws and increased potential for data breaches. Additionally, a focus solely on data accessibility overlooks the critical aspects of how data should be managed over time, including lifecycle management and eventual secure disposal.