Which type of retention helps in retaining records based on regulatory needs?

The correct choice, which is policy-based retention, aligns with an organization's need to comply with specific regulatory requirements for record retention. This type of retention is centered around predefined policies that dictate how long certain types of data need to be kept in order to meet legal and regulatory obligations. Organizations often tailor these policies to ensure that they are in full compliance with laws applicable to their industry, which frequently guides the duration and management of the records.

Policy-based retention offers the flexibility to customize retention periods based on the type of data involved, allowing organizations to manage their information governance more effectively while addressing legal compliance. By setting these policies, organizations can automate the retention and deletion process, minimizing risks associated with data breaches or legal penalties for non-compliance.

In contrast, event-based retention focuses on retaining records triggered by specific events or occurrences, which can vary widely and may not directly tie into regulatory compliance. Compliance-based retention, while closely related, often refers to adherence to specific regulatory standards but doesn’t generally cover the act of retaining data according to a comprehensive set of internal policies. Legal hold retention refers specifically to holding data relevant to pending or anticipated litigation, and while it is crucial for legal purposes, it does not encompass broader regulatory retention requirements.