What is data classification?

Data classification is a process of organizing data according to its sensitivity, value, and risk of unauthorized access. Data classification helps organizations manage their data more efficiently and protect it from unauthorized access. In California, data classification is governed by the California Consumer Privacy Act (CCPA). The CCPA requires companies to classify any personal information they collect from consumers. Data classification involves organizing the data into various categories such as public, internal, confidential, and sensitive. Public data is data that is shared with the public, such as press releases, public reports, and public events. Internal data is data that is used within a company, such as employee records and financial records. Confidential data is data that is shared with trusted third parties, such as vendors and customers. Sensitive data is data that is highly confidential and is only shared with authorized personnel, such as payment information and trade secrets. By classifying their data, organizations can better protect it and ensure that it is used responsibly.

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