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What is the worst IT setup you have seen at a company?
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What industry are you in. This could be compliance for different reasons. Retention is a very specific thing that should be documented in policies.
I know financial institutions that specifically do not want data just hanging around. This limits liability and exposure if there is a breach, and makes any litigation much easier if the data doesn't exist by policy.
Should they be more choosy on what gets deleted, yea probably. But I understand why it's there.