Memory involves three main processes - encoding, storage, and retrieval. There are two main types of memory - explicit memory which we are consciously aware of, and implicit memory which is unconscious. The Atkinson-Shiffrin model describes memory as having three stages - sensory memory, short-term memory, and long-term memory. Information is encoded and either maintained briefly in sensory memory or transferred to short-term memory through rehearsal before being consolidated into long-term memory. Factors like decay, interference, and insufficient cues can lead to forgetting over time.