What is data classification?
Data classification is the process of organizing data into different categories so it can be better managed, protected, and utilized by an organization. It is important for companies to classify their data correctly in order to ensure that different types of data are handled in accordance with state and federal laws. In Massachusetts, data classification is outlined under the Data Security Law. This law requires companies to use recognized methods to identify and classify data into one of three categories: public, confidential, or restricted. Public data is any data that is freely available to everybody, while confidential data is information that should not be shared with unauthorized individuals. Lastly, restricted data is any data that should only be accessed by a select group of individuals. By classifying data properly, organizations can be better prepared to identify and protect sensitive data and ensure compliance with applicable laws.
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