What Is Information Classification? How It Works & Benefits

Information classification is a fundamental aspect of effective information management within organizations. In today’s digital age, where data is generated and stored at an unprecedented rate, the need to accurately classify information has become more crucial than ever before. From sales and marketing to legal and information security, nearly every stakeholder within an organization has specific needs regarding information, but they all share one common requirement: to know what information is available and where it is located. In this article, we’ll explore the importance of information classification, how it works, and the benefits it brings to organizations.

The Need for Information Classification

Information classification serves as the cornerstone of effective information management by providing a structured framework for organizing and managing data assets. By classifying information, organizations can ensure that the right people have access to the right information at the right time, while also safeguarding sensitive data and ensuring compliance with regulatory requirements. Additionally, information classification enables organizations to maximize the value of their data by making it more accessible, searchable, and usable across different departments and business functions.

Approaches to Information Classification

There are various approaches to information classification, each tailored to meet the specific needs of different stakeholders within an organization. For example, a project manager may classify documents based on their business purpose, while an HR manager may classify information according to the employee it pertains to. Similarly, a records manager may classify data against a retention schedule, while an information security professional may classify information based on its sensitivity level. The key is to identify the desired outcomes of the classification system, consider the needs of stakeholders across the organization, and determine the most appropriate approach based on these factors.

Implementing Information Classification

To implement an effective information classification system, organizations should follow a structured approach. This includes:

1. Define Objectives: Clearly define the objectives of the information classification system and identify the specific goals it aims to achieve.
2. Stakeholder Analysis: Identify the key stakeholders who will benefit from the classification system and involve them in the decision-making process.
3. Requirements Gathering: Gather requirements from stakeholders to understand their specific needs and expectations from the classification system.
4. System Design: Design a classification system that aligns with the identified objectives and requirements, taking into account the unique needs of different stakeholders. This should also consider user experience; that is, if normal employees are expected to interact and apply the system, it should be as streamlined and simple as possible. If it is to be automatically implemented via software, it should take into account what classifications the software could plausibly recognize successfully.
5. Implementation: Implement the classification system in a phased approach, ensuring proper training and communication to all stakeholders.
6. Monitoring and Review: Continuously monitor the effectiveness of the classification system and make adjustments as needed based on feedback and evolving business needs.

Best Practices and Examples

Some best practices for implementing information classification include:

• Establishing clear classification criteria and guidelines.
• Providing training and education to employees on information classification.
• Regularly reviewing and updating the classification system to ensure relevance and accuracy.

Examples of effective information classification systems include:

• A financial institution implementing a classification system to categorize data based on sensitivity levels. They may use just five categories, such as Public, Internal, Confidential, Sensitive, and Top Secret, with each category having implications regarding access control, encryption, file sharing, permissions, etc.
• A healthcare organization classifying their content according to HIPAA regulations and data retention policies to determine when to dispose of various types of records, which generates a records classification system with roughly 100 records categories and subgroups.

Information classification is a critical component of effective information management, enabling organizations to organize, protect, and maximize the value of their data assets. By understanding the importance of information classification, considering the needs of stakeholders, and following best practices for implementation, organizations can establish a robust classification system that supports their business objectives and enhances overall information governance. Whatever classification system you settle on, let Rational Governance help you automate its application across your unstructured data sources today.