What does data classification involve?

Data classification involves categorizing data based on its sensitivity to apply appropriate security measures. This process is crucial in ensuring that data is handled according to its importance and the potential risks associated with its exposure. By classifying data, organizations can determine the level of protection required, establish access controls, and implement security measures that align with the data's classification. This helps mitigate risks related to data breaches and ensures compliance with relevant regulations and standards.

The significance of data classification lies in its ability to streamline security efforts by focusing resources on the most sensitive information. It also assists organizations in responding effectively to incidents and managing data protection policies according to the data’s value and risk profile.