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Ineffective data retention practices can significantly jeopardize an organization’s compliance with legal standards. Organizations are required to follow various regulations and laws governing data retention, which dictate how long certain types of data should be kept and when it should be deleted. If data is retained longer than necessary or if it is not retained when required, organizations may face legal penalties, fines, or litigation.

For instance, many jurisdictions have data protection laws that mandate specific timeframes for keeping personal data, especially in sectors like finance and healthcare. Failing to adhere to these regulations can lead to severe compliance issues, undermining an organization's integrity and reputation.

The other options may imply indirect benefits but do not align with the consequences of ineffective data retention practices. Increased data sharing opportunities and wider access to customer insights typically result from effective data management, not ineffective strategies. Similarly, faster decision-making processes are generally a function of streamlined and well-managed data resources rather than the lack thereof.