Data classification is a process of organizing and categorizing data based on its characteristics, confidentiality, and sensitivity. Data classification helps to determine the level of access and protection that data requires. Data classification also makes data easier to understand, compare, and analyze. Data classification is an essential part of information security, as it helps to align the security measures and policies with the data's value and risk. By incorporating data classification into the information architecture, the IT processes can ensure that information security requirements are taken into consideration from the design stage to the implementation stage. References := What is Data Classification? A Data Classification Definition What is Sensitive Data? Definition, Examples, and More

Explanation/Reference: https://www2.deloitte.com/content/dam/Deloitte/co/Documents/risk/InteligenciaFrentealRiesgo/ No.6-RiskIntelligenceCIO.pdf