Grounds of Data Classification

Data can be classified based on following criteria

• Usefulness of the data
• Timeliness of the data
• Value or cost of the data
• Maturity or age of the data
• Lifetime of the data (or when it expires)
• Association with personnel
• Data disclosure damage assessment (that is, how the disclosure of the data would affect the organization)
• Data modification damage assessment (that is, how the modification of the data would affect the organization)
• National security implications of the data
• Authorized access to the data (that is, who has access to the data)
• Restriction from the data (that is, who is restricted from the data)
• Maintenance and monitoring of the data (that is, who should maintain and monitor the data)
• Storage of the data

Excerpt From: Mike Chapple. “(ISC)2 CISSP Certified Information Systems Security Professional Official Study Guide.” iBooks. 

Benefits of Data Classification

Data classification is a means by which data is protected based on its need for secrecy, sensitivity, or confidentiality.

Some of the benefits of data classification are as follows

• Protection of valuable resources and assets.
• Identification of assets critical or valuable to the organization.
• Guidance on selection of protection mechanisms of assets.
• Required for regulatory compliance or legal restrictions.
• Helps to determine access levels and 
• Acts as a parameters for declassification and/or destruction of resources that are no longer valuable.
• Helps in data lifecycle management i.e. retention policy, usage, and destruction of the data.

Data Classification

Data classification is an act of organizing items, subjects, objects etc. into categories, groups, or collections with some similarities. Similarities in the sense of cost, value, risk, sensitivity, vulnerability, privilege, possible levels of loss or damage etc.

Prime objective of data classification is to formalize and stratify the process of securing data based on assigned labels of importance and sensitivity. Also, it is used to ensure security mechanism for data at rest or data in transit. Moreover, classification also addresses how to remove data from the system.