Document retention is crucial for several reasons:
1. Legal Compliance: Businesses must adhere to various regulations and laws that dictate how long certain documents need to be retained. Non-compliance can lead to legal penalties and fines. 2. Operational Efficiency: Having a structured document retention policy helps in efficiently accessing and retrieving documents when needed. 3. Risk Management: Proper document retention helps in managing risks related to data breaches and loss of critical information. 4. Historical Reference: Retaining documents for historical reference can be important for future business planning and decision-making.