December, 2022

Significance, Instructions and Tactics of Data Classification

No one wants their information, passwords, and records to be compromised, so data classification is very important to avoid the risk of cyber threats. Capable knowledge of information management will help you strengthen your security and block ransomware attacks. Whether information comes from a network, a cloud application, or hard drives, access and visibility should be secured with a data classification solution.

What is Data Classification?

This is a standard step for organizations that control large amounts of sensitive information. In addition to reliable protection and techniques against security breaches, data classification is an effective approach to managing and identifying certain types of information.

The ability to organize sensitive and valuable information can further develop a company's security system. The procedure also helps eliminate unnecessary information assets when rescheduling data into distinct categories. It also helps an organization determine who has access to certain data and how long it should be protected.

Four classifications of data:

Public - Any data that is accessible in the public domain can be used, reused and redistributed by anyone. Examples of public data are names and surnames, press releases or job descriptions.

Confidential - Considered private and identifiable data, government and local government usually manage it and categorize it into employee information, management information and business information. Data in this category are government pensioner numbers and other documents protected by law.

Sensitive – Considered ethical or legitimate data and require the highest level of security to prevent unauthorized exposure. It includes trade secrets, client data and other important information within the enterprise.

Personal - any information used to identify an individual such as telephone number, residential address, appearance, and record dates.

Ways to Classify Data

There are different ways to classify information, but it depends on the industry you belong to. There are several things you should consider when classifying data, which include the following:

  • Be aware of what kind of data you need to collect from customers and merchants.
  • Determine what data your organization needs to create.
  • Explore data sensitivity levels - high, medium, or low. High levels have a detrimental impact on society when used maliciously.
  • Restrict access to data to administrators and specific employees only.

There are two primary methods to get data classification:

1. Treat all information as restricted and add rules to your system that could help monitor and process information appropriately with a specific application.

2. Train your staff to better understand the level of sensitivity of the data and learn about the proper labeling and use of these documents. It requires patience and consistency, but it has been shown to be effective because people can more easily recognize data in different environments.

Purpose of Classifying Data

To fully understand your stored data and its location, here is a basic explanation and importance of data classification:

Risk Management and Regulatory Compliance Processes

By consistently implementing successful operational techniques, especially in information retrieval and tracking, organizations can control and eliminate any type of business risk.


Now that you've had the opportunity to manage risk, it's time to decide on the sensitivity and protection of each asset through procedures for handling confidential information. Because there is no one-size-fits-all information protection strategy, technical review and proper preparation are best practices for information security.

Safety Efforts

This is the basic purpose of data classification. When you're fully aware of data confidentiality, it's much easier to know exactly how to secure your devices and networks. To avoid external threats, organizations can use the strongest firewall and adhere to standard data protection.

Monitoring of insider threats should also be done consistently. Insider threat cases often involve data theft or data breaches due to employee negligence, so training individuals in your workforce can improve and mitigate such cases.

Best Practices for Data Classification

Orient Technologies provide the best practices that every organization should follow to effectively manage information classification:

1. Leverage technology to assess master data using labeling automation tools that require authentication from users before they can access characterized information and within networks.
You can also use the various tools required for data management, such as Data Loss Prevention (DLP), Software as a Service (SaaS), and AI-driven security tools.

2. Learn about penalties and follow local, state, and national government compliance approaches. Regularly evaluate your organization's regulated data, upgrade your technology, and comply with changes and modifications based on federal laws. Organizations must apply strict policies because ignorance of the law is no exception to resistance.

3. Enterprises should change and evolve their strong data classification strategy to support users to be more unique and responsible in regulating, protecting, and managing critical data.

Do you need help with correct data processing?

Orient Technologies is there to help you assess risks and establish a data classification strategy for your company.
Contact us today for the best data classification services. +91 22 4292 8888

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