What involves categorizing data based on its sensitivity and the level of protection it requires?

Data classification is a critical practice within information security that focuses on categorizing data according to its sensitivity and the level of protection that it requires. This process helps organizations identify what type of data they hold, such as sensitive personal information, confidential business data, or public information. By categorizing data, organizations can implement appropriate security measures, ensuring that more sensitive data receives a higher level of protection while less sensitive data may have fewer restrictions.

Data classification not only assists in securing information but also aids in compliance with various regulations and standards that require specific handling procedures for different types of data. This systematic approach facilitates effective data management and ensures that all employees are aware of how to handle various types of information properly.

The other options, such as data storage, data sharing, and data use, do not specifically address the task of categorizing data based on its sensitivity. Instead, they refer to different aspects of data management, such as where data is kept, how data is distributed, and the overall utilization of data, respectively. These processes are important but do not encompass the process of categorization that defines data classification.