Describes the process of organizing data by relevant categories so that it may be used and protected more efficiently and involves tagging data to make it easily searchable and trackable.
Mislabeling data can have numerous consequences such as misuse of resources, security breaches, violations of compliance regulations etc.
Once an organization has successfully classified the data, another challenge of data classification can be summarized by the question “Who should have access?” Individual privileges should be appropriated based on the level of classification each asset has been given through the comprehensive nature of a risk assessment process.
An important aspect of data classification referes to the fact that data considered most critical should be protected and stored, both logically and physically, in different locations. A business continuity plan could be deeply ineffective if critical data cannot be recovered or if the occurrence of a loss in data confidentiality were to result in a leak of sensitive data.