What is "data classification"?

Data classification involves the systematic process of categorizing data according to its sensitivity and the potential impact on the organization if that data is compromised. This practice is essential in helping organizations understand the level of protection necessary for different types of data.

By classifying data, organizations can ensure that sensitive information—such as personal identification information, financial records, or proprietary business data—is identified and adequately protected with appropriate security measures. For instance, highly sensitive data may require stringent access controls, encryption, and monitoring, while less sensitive information may not need such rigorous protections. This strategic approach aids in compliance with legal and regulatory requirements, risk management, and the efficient allocation of resources to safeguard the organization’s data effectively.

Overall, data classification is a foundational aspect of a comprehensive information security strategy, enabling organizations to prioritize their security efforts based on the value and sensitivity of the data they handle.