[Company Name] Data Classification Policy

Overview
[Company Name] prioritizes the safeguarding of sensitive information to uphold trust with our
customers, partners, and stakeholders. This data classification policy offers a comprehensive
framework for classifying, handling, and protecting data assets throughout the organization and
guarantees uniformity, confidentiality, integrity, and availability of data, irrespective of its form or
location.

Purpose
The purpose of this policy is to establish a standardized approach to classify data based on its
sensitivity level, facilitating the implementation of appropriate protection measures consistently.
By categorizing data into distinct levels according to their potential impact, we mitigate risks
associated with unauthorized access, disclosure, alteration, or loss.

Scope
This policy applies to all employees, contractors, vendors, and third-party entities who access,
process, or manage [Company Name] data assets. It encompasses data stored in electronic,
physical, or any other format, whether residing within our premises or externally hosted.

Roles and Responsibilities

a. Data Owners (department heads, project managers, data stewards, legal/compliance
officers) shall:
● Be responsible for defining the sensitivity level of data assets
● Ensure accurate classification based on established criteria
● Authorize access controls based on business needs and data sensitivity
● Collaborate with relevant stakeholders to determine appropriate classification
● Document the rationale behind classification decisions
● Regularly review data classifications to align with business needs and regulations

b. Data Custodians (IT administrators, security analysts, and compliance officers) shall:
● Manage and protect data assets according to their classification level
● Implement and enforce security measures to safeguard data integrity, confidentiality,
and availability
● Ensure appropriate technical controls are in place to prevent unauthorized access,
disclosure, or modification
● Oversee data storage, transmission, and disposal processes in compliance with
policies and regulations

This is a sample free data classification policy template from datamation.com.

 ● Collaborate with data owners to implement security controls consistent with
classification levels

c. Data Users (all employees, contractors, vendors, and third-party entities who access or
handle data within their roles) shall:
● Adhere to established classification guidelines and security protocols
● Exercise due diligence in handling sensitive information
● Apply appropriate security measures when accessing, processing, transmitting, or
disposing of data assets
● Report any security incidents or breaches promptly
● Undergo regular training and awareness programs to ensure compliance with data
classification policies and best practices in data security management

Data Handling and Transmission

a. Guidelines for Secure Data Handling
● All employees must ensure that sensitive data is handled securely to prevent
unauthorized access or disclosure
● Data should only be accessed on a need-to-know basis and should not be shared with
unauthorized individuals
● When handling sensitive data, employees should use approved secure devices and
encrypted communication channels

b. Secure Data Transmission Protocols

● All data transmissions, whether within the organization or externally, must be conducted
using secure protocols such as HTTPS or SFTP
● Encryption must be used to protect data during transmission, especially when
transmitted over public networks
● Employees should avoid sending sensitive data via unsecured channels such as email
or instant messaging unless encrypted

c. Data Masking Techniques

● When sharing or displaying sensitive data for non-production purposes, data masking
techniques should be applied to anonymize or obfuscate sensitive information
● Data masking should be performed in a way that preserves the utility of the data for its
intended purpose while protecting sensitive information from unauthorized access

This is a sample free data classification policy template from datamation.com.

Data Classification Procedure
Data classification shall be conducted based on the following guidelines:

Level 1: Public Information

Information intended for public consumption and does not pose any risk to the organization if
disclosed. Examples: Marketing materials, press releases, public event schedules.

Level 2: Internal Use Only

Information restricted to internal personnel and authorized stakeholders for operational
purposes. Examples: Employee directories, non-sensitive correspondence, internal memos.

Level 3: Confidential
Sensitive information requiring protection against unauthorized access, disclosure, or alteration.
Examples: Customer data (excluding publicly available information), financial records,
intellectual property.

Level 4: Highly Sensitive

Critical information with severe repercussions if compromised, necessitating the highest level of
protection. Examples: Trade secrets, proprietary algorithms, strategic plans.

Data Retention and Disposal

a. Data Retention Policies
● [Company Name] follows established data retention policies to ensure that data is
retained only for as long as necessary to fulfill business or legal requirements
● Employees should adhere to specific retention periods defined for different types of data
and ensure that data is not retained beyond its authorized retention period

b. Data Disposal Procedures

● When data reaches the end of its retention period or is no longer needed for its intended
purpose, it should be securely disposed of using approved methods
● Physical data should be shredded or destroyed in accordance with established
procedures, while digital data should be securely wiped or overwritten to prevent
unauthorized recovery

c. Legal and Regulatory Considerations

● Data disposal procedures should comply with relevant legal and regulatory
requirements, including data protection laws, industry standards, and contractual
obligations
● Employees should be aware of their responsibilities regarding data disposal and seek
guidance from the appropriate authority if unsure about the proper disposal method for
specific data assets

This is a sample free data classification policy template from datamation.com.

Impact Level Determination Table
The following impact level determination table outlines criteria for assessing the impact level of
data based on confidentiality, integrity, and availability considerations.
Impact Level Low Medium High Very High

Catastrophic breach
Limited Severe breach of
of highly sensitive
No unauthorized unauthorized sensitive data
data, resulting in
Confidentiality access to non- access to confidentiality,
irreparable damage
sensitive data moderately leading to legal or
to reputation and
sensitive data financial penalties
trust

Data may be Data may be Data integrity Data integrity

altered altered compromised, compromised
Integrity
unintentionally but intentionally but leading to erroneous irreversibly, causing
easily detectable reversible decision-making severe financial loss
Temporary Prolonged system
Significant
Minor disruption in disruption in outage, causing
downtime, affecting
Availability access, easily access, severe disruption to
critical operations for
resolved manageable business continuity
days
within hours and services

Exceptions
Exceptions to this policy may be granted by [Company Name]’s [Chief Information Security
Officer (CISO) or designated authority] under exceptional circumstances with appropriate
justification.

Violations
Violations of this policy may result in disciplinary action, including but not limited to termination
of employment, legal action, or financial penalties, as deemed appropriate by [Company Name]
management.

Incident Response and Reporting

a. Reporting Security Incidents
● All employees are required to promptly report any suspected or confirmed security
incidents to the designated incident response team or IT security personnel
● Security incidents include but are not limited to unauthorized access, data breaches,
malware infections, and suspicious activities involving data assets

This is a sample free data classification policy template from datamation.com.

 b. Incident Response Procedures
● Upon receiving a security incident report, the incident response team will promptly
investigate the incident, contain the impact, and mitigate further damage
● Incident response procedures should be followed in accordance with established
protocols, including escalation procedures and communication protocols

c. Incident Documentation
● All security incidents and the corresponding response actions should be thoroughly
documented for analysis, reporting, and improvement of incident response
procedures
● Documentation should include details such as the nature of the incident, affected
data assets, response actions taken, and recommendations for preventing future
incidents

Access Control and Authentication

a. User Access Management
● Access to data assets should be granted based on the principle of least privilege,
ensuring that employees have access only to the data necessary to perform their job
responsibilities
● User access should be regularly reviewed and updated to reflect changes in job roles
or responsibilities, ensuring that access privileges remain appropriate

b. Strong Authentication Methods

● Employees should use strong authentication methods, such as passwords,
biometrics, or multi-factor authentication, to authenticate their identity when
accessing sensitive data or systems
● Passwords should be complex, regularly updated, and securely stored to prevent
unauthorized access

c. Role-Based Access Controls

● Access controls should be implemented based on roles and responsibilities, with
different access levels granted to employees based on their job functions and data
handling requirements
● Role-based access controls should be regularly reviewed and updated to ensure that
access privileges are aligned with employees' current responsibilities

Monitoring and Audit

a. Data Access Monitoring
● [Company Name] employs monitoring tools and techniques to track and audit data
access, usage, and modifications to detect and prevent unauthorized activities

This is a sample free data classification policy template from datamation.com.

 ● Access logs and audit trails should be regularly reviewed to identify anomalous
behavior or potential security incidents

b. Audit Frequency and Reporting

● Regular audits of data access and usage should be conducted to ensure compliance
with data classification policies and regulatory requirements
● Audit reports should be generated and reviewed by authorized personnel to identify
areas for improvement and ensure ongoing compliance with data security standards

Training and Awareness

a. Employee Training Programs
● [Company Name] provides comprehensive training programs to educate employees
about their responsibilities regarding data classification, handling, and protection
● Training topics include data classification guidelines, security best practices, incident
reporting procedures, and compliance requirements

b. Awareness Campaigns
● Regular awareness campaigns are conducted to reinforce key concepts related to
data security and promote a culture of security awareness among employees
● Awareness materials may include posters, email reminders, online courses, and
interactive workshops

Compliance and Legal Requirements

a. Compliance with Data Protection Laws
● [Company Name] ensures compliance with relevant data protection laws, regulations,
industry standards, and contractual obligations governing the collection, processing, and
storage of data
● Compliance requirements may include GDPR, HIPAA, PCI DSS, and other applicable
regulations

b. Regulatory Reporting
● [Company Name] maintains records of regulatory requirements and ensures timely
reporting to regulatory authorities as required by law

Third-Party Data Sharing and Vendor Management:

a. Third-Party Security Assessment
● Before sharing data with third parties, [Company Name] conducts security assessments
to evaluate the third party's security posture and ensure that adequate safeguards are in
place to protect data

This is a sample free data classification policy template from datamation.com.

 ● Third parties must adhere to [Company Name]'s data protection requirements and sign
data sharing agreements that include provisions for data security and confidentiality

b. Vendor Risk Management

● [Company Name] regularly assesses and monitors third-party vendors' security practices
to mitigate the risk of data breaches or other security incidents
● Vendor risk assessments should be conducted prior to engaging third-party vendors and
periodically thereafter to ensure ongoing compliance with data protection requirements

Policy Approval and Review

This policy has been approved by [authorizing body] and will be reviewed annually or as
necessary to ensure relevance and effectiveness.

Revision History

Version Date Description Author

1.0 [Date] Initial Policy Creation [Author]

1.1 [Date] Policy Amendment [Author]

This data classification policy shall be adhered to by all [Company Name] personnel and is
subject to periodic review and update to align with evolving business needs and regulatory
requirements.

Data Classification Policy Acknowledgment

I, [Employee Name], hereby acknowledge that I have received and reviewed [Company Name]’s
data classification policy. I understand the importance of safeguarding sensitive information and
commit to complying with the policy's provisions and guidelines. I am aware that failure to
adhere to this data classification policy may result in disciplinary actions.

Employee Signature: _______________ Date: _____________

DISCLAIMER
This data classification policy serves as a valuable resource for guiding data
management practices. However, it is not a substitute for legal counsel. For legal
inquiries regarding data classification, consult your organization's legal department or
seek advice from a qualified attorney specializing in data privacy and security.

This is a sample free data classification policy template from datamation.com.