Reducing Risk Through Better Data Destruction Governance
It is difficult to comprehend the amount of data that gets generated around the globe —2.5 million terabytes a day—or how fast it’s growing: 90% of the world’s data has been created in the last two years.
The result of this incredible growth is that most organizations hold far more information than they need, requiring comprehensive management plans to properly maintain and protect it.
No matter what the industry, files accumulate across shared drives, cloud platforms, email systems, backup media, and retired devices during daily operations. Over time, managing that information becomes increasingly difficult and expensive.
For those responsible for records, compliance, and information governance, retention of this data is only part of the challenge. Information that has reached the end of its retention period must be destroyed in a secure and documented manner. When organizations keep information too long or dispose of it improperly, they increase their exposure to data breaches, audit findings, regulatory penalties, and legal disputes.
Continue reading to dive into the importance of proper data destruction, the laws that should be guiding your destruction policies, and best practices for compliance.
Data destruction is the secure disposal of physical and digital information in accordance with regulatory requirements and industry best practices.
Improper disposal can expose organizations to significant risk. Many data breaches result from preventable information management failures, including poor retention practices, inadequate controls, and incomplete destruction processes.
The consequences can be costly. According to IBM, the average cost of a U.S. data breach reached $10.22 million in 2025. Beyond regulatory fines, organizations may face investigation costs, legal expenses, breach notification requirements, operational disruptions, and reputational damage.
Effective destruction practices help reduce these risks and play a critical role in protecting sensitive information, maintaining compliance, and preserving customer trust.
As the information landscape has evolved, so have government regulations concerning data. Several state and federal laws now mandate that companies properly store and destroy data to protect consumers and employees.
The Health Insurance Portability and Accountability Act (HIPAA) was passed in 1996 as the healthcare industry began to rely on digital systems in both clinical and administrative settings. This federal legislation protects medical records and prevents their disclosure.
HIPAA data destruction protocols are stringent and include the following:
The Gramm-Leach-Bliley Act mandates that financial institutions—such as banks, mortgage lenders, and credit unions—carry out data destruction in a manner consistent with the Federal Trade Commission’s strict disposal regulations. These include protocols similar to HIPAA’s requirements: burning, pulverizing, or shredding consumer information, erasure of electronic media in a way that prevents data from being read or reconstructed, and due diligence on partnerships with contractors that carry out destruction.
The Fair and Accurate Credit Transactions Act (FACTA) is an amendment to the better-known Fair Credit Reporting Act. Enacted in 2003, FACTA protects consumers from identity theft and requires businesses of all sizes and industries to safeguard customer information. Specialized disposal requirements added in 2005 require organizations to take reasonable measures to destroy consumer information derived from credit reports so it cannot be read, reconstructed, or misused after disposal.
When pressure for legal compliance increases, it may be time to partner with a vendor like Access that offers information management lifecycle programs focused on security and defensibility.
Data is a double-edged sword. As valuable as it can be in helping companies understand consumer trends, it can also be costly when mismanaged. Failure to maintain data destruction compliance can result in hefty fines and lawsuits, as well as operational interruptions and reputational damage.
Fortunately, there are clear steps companies can take to remain compliant:
An effective retention and destruction program starts with a written policy. The policy should define what information your organization keeps, how long it must be retained, and how it will be destroyed once it reaches the end of its retention period.
Not all information carries the same business, legal, or regulatory requirements. Work with stakeholders across departments to identify the records that require retention and establish consistent procedures for secure disposal.
Also, consider that a policy only works if employees follow it. Regular reviews and audits help confirm that retention schedules remain current and that destruction activities take place as documented.
Before you can properly destroy information, you need a clear understanding of what you have and where it resides. Many organizations store records across paper files, shared drives, cloud applications, email systems, backup media, and offsite storage locations, creating a complicated collection that can be difficult to fully track.
Once you identify those records, classify them according to their business value, sensitivity, and regulatory requirements. Different types of information often carry different retention periods and disposal requirements.
A records inventory helps you determine which laws and regulations apply to specific information and when that information becomes eligible for destruction. It also reduces the risk of destroying records too early or retaining them longer than necessary.
A destruction schedule only works if your organization has a consistent process for carrying it out. Create clear approval workflows, define who authorizes destruction, and maintain documentation of completed activities.
Scheduled shredding services can help keep paper records from piling up beyond their retention periods. At the same time, remember that sensitive information often lives on hard drives, backup tapes, servers, and other storage media. Your destruction process should address both paper and digital records.
When destruction becomes part of routine operations, it’s easier to stay compliant and avoid unnecessary risk.
Compliance depends on more than policy. It requires trained staff, reliable partners, and clear documentation of how destruction happens across your organization. Because retention and destruction rules vary by industry and state, many organizations also work with records management consultants to validate their approach and reduce exposure to legal or regulatory issues.
When you bring in a data destruction vendor, vet them carefully before you hand over records or devices. Look for:
Strong documentation and qualified vendors help you prove that destruction took place as required and support your organization during audits, investigations, or legal review.
As data volumes grow, organizations have an opportunity to improve operations and customer service—but only when they remain in control of that data. Without clear retention and destruction practices, that same growth turns into the corporate equivalent of hoarding.
Curious about how a qualified data destruction vendor can help you reduce risk and support consistent compliance? Learn more about Access’ secure destruction services or contact us to start a conversation.
Brian Quinn is an expert on records and information management, scanning operations and systems, digital transformation, and secure destruction of information. Brian is a Certified Records Manager (CRM), Certified Information Professional (CIP) and has an MBA from Xavier University’s Williams College of Business.
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