Data classification is the process of organizing data into categories for its most effective and efficient use.
A well-planned data classification system makes essential data easy to find and retrieve. This can be of particular importance for risk management, legal discovery, and compliance. Written procedures and guidelines for data classification should define what categories and criteria the organization will use to classify data and specify the roles and responsibilities of employees within the organization regarding data stewardship.
Once a data classification scheme has been created, security standards that specify appropriate handling practices for each category and storage standards that define the data’s lifecycle requirements should be addressed.
To be effective, a classification scheme should be simple enough that all employees can execute it properly.