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All glossary terms

Privacy & data

Data Classification

Data classification is the practice of assigning information to categories based on properties such as sensitivity, confidentiality, or operational importance. A classification scheme gives people and systems a shared way to apply handling rules, retention choices, and access controls.

Also known as information classification.

Why it matters in practice

Useful labels are defined clearly enough that teams can apply them consistently to files, records, and data flows. Classification should reflect business context and the consequences of exposure, not just a fixed list of technical formats. Labels only help when downstream controls and owners understand what they require.

Example

A team labels a dataset containing account identifiers as restricted and limits its export path to approved, audited workflows.

Educational note

This definition is general information, not legal advice. It may omit facts that matter to a specific situation and does not establish or guarantee compliance.