CompTIA Cloud+ Practice Test

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What is data classification concerned with?

Converting data into different formats
Organizing information into different tiers or categories
Encrypting sensitive information
Storing data across multiple locations

The correct answer is: Organizing information into different tiers or categories

Data classification is fundamentally about the organization of information into distinct tiers or categories based on specific attributes or sensitivity levels. This process allows organizations to determine how data should be handled, protected, and who has access to it. By classifying data, businesses can enforce appropriate security measures, compliance, and data management strategies tailored to the needs and risks associated with each category of data. For instance, data might be classified as public, internal, confidential, or restricted, guiding the handling processes for each type. Proper classification enhances risk management as it informs stakeholders on how to treat the data based on its classification, ensuring that sensitive information is adequately protected while making less critical data easily accessible to those who need it. This approach is essential in cloud environments where data security and compliance are paramount.