Data Classification Types: Criteria, Levels, Methods, and More

What Is Data Classification?

Data classification involves the organization of structured and unstructured data into logical categories. The goal is to ensure data is used in a more secure and efficient manner. Data classification enables organizations to easily locate and retrieve their data. It also facilitates better risk management, regulatory compliance and legal discovery.

Data classification processes apply labels to personal information and sensitive data. Data classification labels ensure that data can be effectively and accurately searched and tracked. Another key advantage of data classification is that these processes eliminate duplicate data, reduce storage and backup costs, and help minimize cyber security risks.

In this article:

• 3 Data Classification Criteria
• Data Classification Levels
  • Data Sensitivity Levels Used by Businesses
  • Data Sensitivity Levels Used in Government
• Common Data Classification Methods
  • Paper-Based Classification Policy
  • Automated Classification Policy
  • User-Driven Classification Policy

3 Data Classification Criteria

Data classification involves assigning metadata to pieces of information according to certain parameters. Here are three common criteria used for data classification:

1. Content-based classification—assigns tags based on the contents of certain pieces of data. This scheme reviews the information stored in a database, document or other sources, and then applies labels that define the data type and a sensitivity level.
2. Context-based classification—uses environmental information, like metadata, to create data classification labels. For example, this method may automatically classify all documents produced by a specific application or user as financial information. Additionally, you can use context-based classification to generate labels based on predefined rules that define data type and the sensitivity level.
3. User-based classification—a knowledgeable user decides how a certain classification label should be applied to a specific piece of data. This user can be a specialized classification authority or the creator of the data. However, this method may cause scalability issues in organizations that generate large amounts of data.

Data Classification Levels

Here are several types of data sensitivity levels:

Data Sensitivity Levels Used by Businesses

• Restricted—restrict the use and access of all data classified as highly sensitive. This type of level is often handled on a “need-to-know” basis. Restricted data may include intellectual property, personally identifiable information (PII), trade secrets, health information and cardholder data. Disclosure of this data can have significant financial or legal implications.
• Confidential—this data can be used across the organization. However, it must be contained within the boundaries of business. Confidential data is usually subject to legal restrictions that regulate how the data must be handled. Confidential data may include pricing, contracts and marketing plans. Disclosure of this data can negatively affect operations and brand.
• Internal—this type of information is made available company-wide but it is still considered internal data that requires protection, albeit limited. Internal data may include company directories, company-wide memos, and employee handbooks. Disclosure of this type of data may result in minimal impact on the organization.
• Public—you can share the information openly with the public. This type of data does not require any security controls when used or stored.

Data Sensitivity Levels Used in Government

• Top Secret—information that requires the highest level of access control and protection. It is restricted to people with a “need to know” clearance. Disclosed top-secret data can threaten national security.
• Secret—information that requires a high level of protection. The disclosure of this information can cause serious damage to national security.
• Confidential—applies to the lowest level of classified government data. Confidential data requires less protection than top-secret or secret data. Disclosed confidential information can cause some harm to national security.
• Sensitive but unclassified (SBU)—includes all information that is not otherwise classified. However, it is still categorized as sensitive, which means it requires some protection. Disclosed SBU data may violate the privacy rights of citizens.
• Unclassified—applies to data labeled as not sensitive. This data does not require any protection.

Common Data Classification Methods

The following are several ways of addressing data classification using an organization-wide data classification policy.

Paper-Based Classification Policy

This policy outlines how employees need to treat various sorts of data they deal with, in keeping with the organization’s overall approach to data security and strategy. A well-defined policy will let users make intuitive and speedy decisions regarding the worth of a bit of information, and which handling rules apply.

Automated Classification Policy

This technique does not involve the user. It enforces a classification policy, making sure it is consistently applied over all touchpoints, without major education programmes or communication.

User-Driven Classification Policy

The data classification process could be entirely automated, yet it is more efficient if the user has control. This approach makes employees responsible for choosing the appropriate label, and attaching it via a software tool at the point of editing, creating, saving or sending.