Data classification is the process of organizing data into categories based on its sensitivity, value, or regulatory requirements. It helps organizations prioritize how they store, protect, and manage information.
Common classification levels include public, internal, confidential, and restricted. Each level determines how data should be handled—who can access it, how it should be encrypted, and where it should be stored.
Classifying data correctly is essential for risk management. It ensures that sensitive data like financial records, intellectual property, or Controlled Unclassified Information (CUI) is given stronger protections. It also helps organizations comply with data protection regulations and standards.
An effective data classification program involves clearly defined policies, employee training, and tools that automate classification as data is created or modified.
For organizations dealing with CUI, creating isolated, well-governed spaces is often the best approach. That’s where a CMMC enclave becomes relevant. These secure environments allow businesses to manage and safeguard sensitive data according to compliance requirements without overhauling their entire IT infrastructure.
Data classification plays a critical role in forming a strong cybersecurity posture and supporting compliance goals.