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Glossary > Data classification

What is Data classification?

Understanding Data classification

Entails analyzing the data that the organization retains, determining its importance and value, and then assigning it to a category. Data classification is the process of categorizing data based on sensitivity, criticality, and regulatory requirements to ensure appropriate security controls are applied. Common classification levels include Public, Internal, Confidential, and Restricted, each with specific handling requirements. Data classification is required by frameworks like ISO 27001, NIST SP 800-53, and regulations like GDPR and HIPAA. Organizations implement classification through policies, procedures, training, labeling tools, and automated data discovery and classification solutions. For example, a financial services company might classify customer financial records as Confidential, requiring encryption both in transit and at rest, while marketing materials might be classified as Public with minimal restrictions. Related terms: Information classification, Data sensitivity, Classification levels, Data handling, Data labeling, Controlled Unclassified Information CUI.

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