Data classification
Data classification is the process of organizing data into categories based on sensitivity, confidentiality, and regulatory requirements to improve security and compliance.
What is data classification?
Data classification is a structured approach to identifying, labeling, and organizing data according to its level of sensitivity and importance. It helps organizations understand what data they hold, where it resides, and how it should be protected. Typical classification levels include public, internal, confidential, and restricted.
Effective data classification supports compliance with frameworks such as the GDPR, CCPA, and ISO/IEC 27001 by ensuring sensitive data receives appropriate security controls and access management.
Why data classification matters
Data classification is foundational to data governance, risk management, and privacy compliance. It enables organizations to apply proper security measures, manage access, and ensure that sensitive information is handled appropriately throughout its lifecycle.
By classifying data, organizations can better identify high-risk information, prevent unauthorized disclosure, and streamline compliance with privacy and security regulations.
Data classification also supports efficient data discovery, storage optimization, and the enforcement of policies like encryption, retention, and deletion.
How data classification is used in practice
- Identifying and labeling data based on sensitivity and business impact
- Applying security controls and access permissions according to classification level
- Supporting compliance with privacy and cybersecurity regulations
- Enabling data governance initiatives and risk management programs
- Integrating with data loss prevention (DLP) and encryption tools
- Automating data discovery and classification using AI and machine learning technologies
Related laws & standards
- General Data Protection Regulation (GDPR)
- California Consumer Privacy Act (CCPA)
- California Privacy Rights Act (CPRA)
- ISO/IEC 27001
- NIS2 Directive
How OneTrust helps with data classification
OneTrust enables organizations to identify, classify, and protect sensitive data across their environments. The platform automates data discovery, categorization, and policy enforcement to support compliance with global privacy and security frameworks.
[Explore Solutions →]
FAQs about data classification
Common classification levels include public, internal, confidential, and restricted. Each level determines who can access the data and what protection measures are required.
Responsibility is typically shared across data governance, security, and compliance teams. Data owners classify data according to its use and sensitivity, while IT enforces controls.
Data classification helps organizations identify personal data and apply appropriate security measures, supporting GDPR principles such as data minimization, integrity, and confidentiality.
