What is the process of organizing data into categories for effective use called?

The process of organizing data into categories for effective use is referred to as data classification. This method involves defining and labeling data types according to their sensitivity, importance, and usage within an organization. By classifying data, organizations can improve data management, enhance security protocols, and ensure compliance with regulations, as different categories of data may require distinct handling and protection measures.

Data classification helps streamline a variety of tasks, including data retrieval, backup processes, and access control, as it allows for more efficient data governance by clearly defining the value and requirements associated with different data sets. This is critical for organizations that handle large volumes of information, as it aids in prioritizing security resources and responsiveness to data-related responsibilities.

In the context of this question, data retention pertains to the policies regarding data storage duration, data ownership refers to the legal rights associated with data, and data encryption involves securing data through encoding. While each of these concepts plays a role in data management and security, they do not specifically focus on the categorization aspect, which is the core function of data classification.