Data classification as a part of the process can be defined as a tool for categorization of data to help organizations effectively answer the following questions:
When implemented, data categorization policies provide a bridge between IT professionals and the rest of the organization. IT staff are informed about the data’s value, and management better understands which part of the data center needs to be invested in. This can be important regarding risk management, legal discovery, and regulatory compliance (HIPAA, GDPR, CCPA).
Data classification needs to take into account the following: