Data classification is the process of identifying data based on its level of sensitivity or importance. Data classification schemes typically involve assigning data to one or more categories, such as "public," "confidential," "sensitive," or "classified." The specific categories and definitions used will depend on the needs and requirements of the organization.
Data classification is typically used to help organizations manage and protect their data assets. By identifying and labeling data based on its sensitivity, organizations can more easily determine the appropriate controls and safeguards that need to be in place to protect the data. For example, data that is classified as "confidential" may require stronger security measures, such as encryption, than data that is classified as "public."
Data classification can also be used to help organizations comply with regulatory requirements, such as those related to data privacy or security. By properly classifying their data, organizations can ensure that they are handling it in accordance with relevant laws and regulations.