What process categorizes data based on sensitivity and the potential impact of unauthorized disclosure?

The process that categorizes data based on sensitivity and the potential impact of unauthorized disclosure is data classification. This practice is essential in cybersecurity and information management as it helps organizations determine how to handle information based on its level of sensitivity and the risk associated with it. By implementing a data classification scheme, organizations can apply appropriate security measures, access controls, and data handling procedures tailored to the specific categories of data, ensuring that sensitive information is adequately protected while allowing for efficient data management.

Data classification typically involves assigning labels or categories (such as confidential, internal, public, or sensitive) that reflect the importance and sensitivity of the data. This enables organizations to prioritize protective measures where they are most needed and ensure compliance with relevant regulations and standards.