The CMDB Data Manager capability in ServiceNow is designed to support CMDB governance, specifically around data lifecycle management. Its primary purpose is to ensure that CI records are retained, archived, and deleted in accordance with defined retention policies, regulatory requirements, and organizational data governance standards.

As CMDBs mature, they naturally accumulate obsolete, retired, or decommissioned CIs. If these records are not properly managed, they negatively impact CMDB health, reporting accuracy, discovery reconciliation, and performance. CMDB Data Manager addresses this by automating the archival and deletion of records once lifecycle conditions and retention thresholds are met.

Option A is incorrect because encryption of archived records is handled by platform-level security and data protection features, not CMDB Data Manager. Option B is also incorrect because relationship rule enforcement is managed through CSDM guidance, CMDB relationship rules, and identification/reconciliation logic—not by CMDB Data Manager.

By automating retention-based archival and cleanup, CMDB Data Manager helps organizations maintain a lean, compliant, and high-quality CMDB, which directly supports CMDB Health metrics such as correctness and compliance.

Therefore, the correct and verified answer is Option C.