What is data minimization and how does it help reduce incident impact?

• A. Collect and retain all data to maximize analytics.
• B. Store data only in the cloud
• C. Collect and retain only necessary data.
• D. Archive data for seven years regardless of need.

Answer: (C)

Data minimization means collecting and keeping only the data that is strictly necessary for a defined purpose. This approach reduces incident impact because, if a breach occurs, there is less data for an attacker to access, exfiltrate, or misuse. Fewer records also make detection, containment, and forensic analysis quicker, and the privacy and regulatory risks are lower since you’re not retaining unnecessary information. Practically, you define the purpose, avoid collecting extra data, apply retention limits, and use anonymization or pseudonymization where possible. The other options either gather too much data, rely solely on where data is stored without addressing necessity, or keep data for a fixed long period regardless of need, all of which can increase risk in an incident.