What is data classification?

Data classification refers to the process of categorizing data based on its sensitivity and the level of protection it requires. This practice is crucial in ensuring that sensitive information is handled appropriately, as different types of data may have varying legal and compliance requirements, as well as implications for security and privacy. By classifying data, organizations can implement appropriate safeguards, determine who has access to certain data, and establish protocols for data handling, storage, and sharing.

Understanding the various categories of data, such as public, internal, confidential, and restricted, enables organizations to prioritize security measures based on the potential risks associated with unauthorized access or disclosure. This structured approach significantly enhances an organization's data governance and cybersecurity posture.