Data classification is one of the most crucial elements of an effective information governance process—yet one that many companies fail to implement well.

In its simplest terms, data classification is the process of categorizing data based on its level of sensitivity. When done properly, the classification of data helps a company determine the most appropriate level of safeguards and controls that need to be in place.

Jaclyn Jaeger is a freelance contributor to Compliance Week after working for the company for 15 years. She writes on a wide variety of topics, including ethics and compliance, risk management, legal,...