Which term entails analyzing the data the organization retains, determining its importance and value, and then assigning it to a category?

• A. Data Custodian
• B. Data Owner/Controller
• C. Data Classification
• D. Control

Answer: (C)

Data Classification is the process of analyzing the data the organization retains, determining its importance and value, and assigning it to categories such as public, internal, confidential, or restricted. This labeling guides how the data is protected, stored, and handled, aligning protections with risk and regulatory requirements. It helps determine what level of access, encryption, and retention applies to each data set, and it sets the basis for subsequent governance and controls. In practice, the data owner or data steward usually defines the classification scheme and approves categories, while data custodians implement the protections, and controls are the specific safeguards applied based on the category.