CDS Data Lifecycle Management Flashcards

Which lifecycle management practice helps prevent 'data hoarding' and reduces storage costs while maintaining compliance?

Answer: Applying retention schedules with automated disposition triggers

Automated retention schedules trigger reviews or disposals at defined intervals, preventing indefinite accumulation of data beyond its useful life.

A CDS practitioner is defining lifecycle stages for transactional data. Which ordering correctly represents the standard data lifecycle?

Answer: Creation → Storage → Usage → Archiving → Destruction

The standard data lifecycle flows from creation through active storage and usage, into archiving for long-term retention, and finally destruction when no longer needed.

What is 'data obsolescence' in the context of lifecycle management?

Answer: Data that is no longer accurate, relevant, or useful for its original purpose

Data obsolescence refers to data that has lost its business value or accuracy over time and should be evaluated for archiving or disposal.

Under US SEC Rule 17a-4, broker-dealers must retain electronic records in what format to ensure authenticity?

Answer: Non-rewriteable, non-erasable (WORM) format

SEC Rule 17a-4 requires that broker-dealer electronic records be stored in a WORM format to prevent alteration or deletion, ensuring integrity for audits.

Which metric is most useful for measuring the effectiveness of a data lifecycle management program?

Answer: Percentage of data assets with defined and enforced retention policies

Tracking policy coverage across data assets measures how consistently the lifecycle program governs data from creation to disposal.

What role does a data steward play in the end-of-life stage of the data lifecycle?

Answer: Ensuring data is disposed of per retention schedules, legal holds, and disposal procedures

At end-of-life, the data steward coordinates compliant disposal including checking for legal holds, obtaining destruction certificates, and updating the asset register.