The primary reason for an organization to classify the data stored on its internal networks is to implement data protection requirements1234. Data classification helps organizations understand what data they have, its characteristics, and what security and privacy requirements it needs to meet so that the necessary protections can be achieved3. While determining data retention policy56, complying with the organization's data policies27, and following industry best practices891011 are important aspects of data classification, they are secondary to the fundamental requirement of implementing data protection requirements.
References:
What Is Data Classification & Why Is It Important? - RiskOptics
Data Classification Policy: Definition, Examples, & Free Template - Hyperproof Data Classification Policy: Benefits, Examples, and Techniques - Satori What is a Data Classification Policy? - Digital Guardian Data Classification and Practices - NIST Data Classification as a Catalyst for Data Retention and Archiving ...
What is data classification? - Cloud Adoption Framework
Data Classification - Data Security Policies | ITS Policies ...
IMPLEMENTING DATA CLASSIFICATION PRACTICES - NIST
Best Practices for Data Classification | Forcepoint

The best way for an organization to mitigate the risk associated with third-party application performance is to utilize performance monitoring tools to verify service level agreements (SLAs). Performance monitoring tools are software or hardware devices that measure and report the performance of an application or system, such as speed, availability, reliability, etc. Performance monitoring tools can help mitigate the risk associated with third-party application performance, by allowing the organization to verify whether the third-party provider is meeting the SLAs, which are contracts or agreements that define the expected level and quality of service for an application or system. Performance monitoring tools can also help identify and resolve any performance issues or problems that may arise from the third-party application. Ensuring the third party allocates adequate resources to meet requirements is a possible way to mitigate the risk associated with third-party application performance, but it is not the best one, as it may not be feasible or effective depending on the availability, cost, and suitability of the resources. Using analytics within the internal audit function is a possible way to mitigate the risk associated with third-party application performance, but it is not the best one, as it may not be timely or relevant depending on the frequency, scope, and quality of the analytics. Conducting a capacity planning exercise is a possible way to mitigate the risk associated with third-party application performance, but it is not the best one, as it may not be accurate or reliable depending on the assumptions, methods, and data used for the capacity planning.

Outsourcing the development of an e-banking solution when in-house technical expertise is not available can significantly reduce start-up costs. This is because the organization can avoid the expenses associated with hiring and training a full-time development team, purchasing necessary hardware and software, and maintaining the system1. While outsourcing can also potentially reduce the risk of system downtime, increase the ability to adapt the system, and provide direct oversight of risks, these benefits are not as immediate or guaranteed as the cost savings123.
References: Maxicus1, Forbes2, Strategy& - PwC3