Data classification is a process of organizing and categorizing data based on its characteristics, confidentiality, and sensitivity. Data classification helps to determine the level of access and protection that data requires. Data classification also makes data easier to understand, compare, and analyze. Data classification is an essential part of information security, as it helps to align the security measures and policies with the data's value and risk. By incorporating data classification into the information architecture, the IT processes can ensure that information security requirements are taken into consideration from the design stage to the implementation stage. References := What is Data Classification? A Data Classification Definition What is Sensitive Data? Definition, Examples, and More

Storing customer data in an offshore cloud service provider may pose legal and regulatory risks for the enterprise, such as data protection, privacy, and sovereignty issues. The CIO should consider the compliance requirements of the applicable legislation in both the home and host countries before making this decision. Reference:= CGEIT Review Manual (Digital Version), Chapter 5: Risk Optimization, Section 5.2: IT Risk Management, Subsection 5.2.3: IT Risk Identification, Page 163 CGEIT Review Manual (Print Version), Chapter 5: Risk Optimization, Section 5.2: IT Risk Management, Subsection 5.2.3: IT Risk Identification, Page 163