Data classification and labeling are used to do what?

• A. Classifies data by sensitivity (public, internal, confidential, restricted) and applies handling, storage, and access controls
• B. Data labeling is used only for archival.
• C. Data classification is about file size.
• D. Data labeling replaces authentication.

Answer: (D)

Data classification and labeling organize information by how sensitive it is, so organizations can apply the appropriate handling, storage, and access controls. This means data marked as public, internal, confidential, or restricted can be stored, transmitted, and accessed in ways that match its risk level, helping protect it from leakage or misuse and supporting regulatory and organizational policies. Data labeling guides how data should be processed over its life cycle, including retention and protection requirements, rather than serving only as an archival tool. Classification focuses on sensitivity, not file size, so it’s about risk and impact rather than how big a file is. And labeling doesn't replace authentication; it works alongside it to determine what level of access is appropriate, while authentication still verifies who you are before access is granted.