What is Data Classification?

Categorizing data by sensitivity level to apply appropriate security and access controls.

Data classification is the process of organizing data into categories based on its sensitivity, value, and regulatory requirements. Typical classification levels include Public, Internal, Confidential, and Restricted. Each level has specific handling requirements for storage, encryption, access control, sharing, and retention. Data classification is foundational to data governance — without knowing what data you have and how sensitive it is, you cannot protect it appropriately.

Related terms

Data Governance

The framework of policies, processes, and standards for managing data assets across an organization.

GDPR Compliance

Adhering to the EU's General Data Protection Regulation for personal data handling.

Data Ethics

Principles guiding the responsible collection, processing, and use of data.

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