Which term applies confidentiality and privacy labels to a piece of information?

• A. Data Archival
• B. Data Classification
• C. Data Storage
• D. Data Sharing

Answer: (B)

Assigning labels that indicate how sensitive information is and how it should be protected is data classification. This process marks data with confidentiality and privacy levels, which then drive who can access it, how it’s stored, who can share it, and how long it should be kept. It creates a structured approach to applying security controls based on the data’s sensitivity, supporting governance and regulatory compliance.

Data archival is about long-term storage and retention, data storage refers to where data resides, and data sharing concerns distributing data to others. None of these by themselves establish the systematic labeling and handling rules tied to sensitivity like data classification does.