Data classification is a vital component of any information security and compliance program, especially if your organization stores large volumes of data. It provides a solid foundation for your data security strategy by helping you understand where you store sensitive and regulated data, both on premises and in the cloud. Moreover, data classification improves user productivity and decision-making, and reduces storage and maintenance costs by enabling you to eliminate unneeded data. Show
In this article you will learn what benefits data classification offers, how to implement it and how to choose the right software solution. Key Data Classification Terms and DefinitionsData classification is the process of organizing structured and unstructured data into defined categories that represent different types of data. Standard classifications used in data categorization include:
Sensitive data is a general term representing data restricted to use by specific people or groups. Sensitive and confidential data are often used interchangeably. Examples of sensitive data include intellectual property and trade secrets. Data reclassification is re-categorization of data to apply appropriate updates, for example, based on changes to legal or contractual obligations, data usage or value, or new or revised regulatory mandates. Data tagging or labeling adds metadata to files indicating the classification results. Purpose of Data ClassificationData classification helps you understand what types of data you store and where that data is located. This intelligence:
Benefits of Data ClassificationMore broadly, data classification helps organizations improve data security and ensure regulatory compliance. Data SecurityClassification is an effective way to protect your valuable data. By identifying the types of data you store and pinpointing where sensitive data resides, you are well positioned to:
Regulatory ComplianceCompliance regulations require organizations to protect specific data, such as cardholder information (PCI DSS) or the personal data of EU residents (GDPR). Data classification enables you to identify the data subject to particular regulations so you can apply the required controls and pass audits. Here’s how data classification can help you meet common compliance standards:
Types of Data Classification
Examples of Data Classification CategoriesExample of a Basic Classification SchemeThe simplest scheme is three-level classification:
Example of a Government Classification SchemeGovernment agencies often use three levels of sensitivity but give them different labels than listed above: top secret, secret and public. For more complex data structures, more levels may be added. Here is a five-level strategy with examples:
Example of Commercial ClassificationTypically, organizations that store and process commercial data use four levels to classify data: three confidential levels and one public level. Some expand that to a five-level system with the following levels:
Data Classification ProcessEffective Information Classification in Five Steps
Building an Effective Data Classification PolicyA data classification policy is a document that includes a classification framework, a list of responsibilities for identifying sensitive data, and descriptions of the various data classification levels. A good classification policy:
How to Select a Data Classification SolutionLook for these features:
FAQWhat is the purpose of data classification? Data classification sorts data into categories based on its value and sensitivity. Why is data classification important? What benefits does it offer? Data classification helps you prioritize your data protection efforts to improve data security and regulatory compliance. It also improves user productivity and decision-making, and reduces costs by enabling you to eliminate unneeded data. What are common data classification levels? Data is often classified as public, confidential, sensitive or personal. What are the data classification types? Classification can be content-based, context-based or user-based (manual). What software should I use for data classification? Look for data classification software, like that offered by Netwrix, which:
Who is responsible for data classification in an organization? Organizations typically designate a Security and Risk Manager, a Data Protection Manager, Compliance Committee or a similar entity. |