Data classification is the process of organizing data into categories based on attributes like file type, content, or metadata. The data is then assigned class labels that describe a set of attributes for the corresponding data sets. The goal is to provide meaningful class attributes to former less structured information, enabling organizations to manage, protect, and govern their data more effectively.

Data classification can be viewed as a multitude of labels that are used to define the type of data, especially on confidentiality and integrity issues.

Approaches

Classification techniques might be used for reports generated by ERP systems or where the data includes specific personal information that is identified. Many organizations also employ context-based classification that considers factors such as data source, user identity, and application context.

Regulatory frameworks

Data classification schemes are mandated or implied by numerous regulatory frameworks that require organizations to identify, categorize, and protect sensitive information according to its level of sensitivity.

The Health Insurance Portability and Accountability Act (HIPAA) Security Rule requires covered entities to conduct an accurate and thorough assessment of potential risks and vulnerabilities to the confidentiality, integrity, and availability of protected health information under 45 CFR 164.308(a)(1)(ii)(A), which necessitates classification of data to distinguish protected health information from other organizational data.. U.S. Department of Health and Human Services. The December 2024 HIPAA Security Rule notice of proposed rulemaking (90 FR 898) would mandate comprehensive technology asset inventories and require mapping of how electronic protected health information moves through an organization, formalizing data classification as an explicit compliance obligation.. Federal Register. January 6, 2025.

NIST Special Publication 800-60 provides guidelines for mapping information types to security categories, establishing a structured methodology for federal agencies to classify data and apply appropriate security controls based on the potential impact of a security breach.. National Institute of Standards and Technology. August 2008.

See also