How does data classification aid in cybersecurity risk management?

Classifying data according to its sensitivity helps organizations in better managing their cybersecurity risks by allowing them to prioritize their security measures and allocate resources effectively. This enables organizations to focus their efforts on protecting their most critical and confidential information, ensuring that appropriate safeguards are in place. By understanding the sensitivity of data, organizations can implement the necessary security controls, encryption, access restrictions, and monitoring mechanisms to protect it from threats such as unauthorized access, data breaches, and malicious attacks. Classifying data also helps in complying with regulatory requirements and industry standards related to data protection and privacy.