Data classification is the process of organizing and categorizing data based on its level of sensitivity, importance, and confidentiality. This helps organizations manage their data more effectively by ensuring that sensitive information is protected and accessed only by authorized personnel. Data classification typically involves assigning labels or tags to data based on predetermined criteria, such as the type of data, the level of sensitivity, and the potential impact of unauthorized access or disclosure. Data classification can help organizations comply with regulations and legal requirements related to data privacy and security, as well as protect against data breaches and cyber-attacks. It can also help organizations optimize their data storage and management strategies by identifying which data is most valuable and should be prioritized for backup, retention, and archival purposes.