What process establishes the necessary controls, such as encryption and access controls, required to protect data adequately?

Data classification is fundamental in establishing the necessary controls required to protect data adequately. This process involves categorizing data based on its sensitivity and criticality, which directly informs the level of protection that must be applied. For example, highly sensitive information such as personal identification details or financial records may require stronger encryption and stricter access controls compared to less sensitive data.

By understanding the type and sensitivity of data, organizations can implement appropriate security measures tailored to the risks associated with that data. This ensures that data is not only secured against unauthorized access but also managed in compliance with relevant regulations or standards. Through effective data classification, organizations can prioritize their resources and ensure that the most critical assets receive the required level of protection.