Key points

• A data classification matrix helps organisations categorise their data according to its sensitivity, ensuring that sensitive information is properly secured and protected.
• Properly classifying data is essential for staying compliant with regulations like GDPR, HIPAA, and PCI DSS, helping businesses avoid fines and data breaches.
• By creating a data classification matrix, organisations can improve their data governance, and streamline data management processes.
• Metomic offers solutions to automate and simplify the data classification process, making it easier for businesses to manage and secure their data across cloud and SaaS environments.

Managing sensitive data is challenging, but a data classification matrix simplifies this by categorising data for better security and compliance.

Businesses rely increasingly on cloud-based and SaaS applications. With sensitive information being shared and stored across multiple platforms, it’s essential for organisations to have a clear system in place to manage and protect that data. That’s where a data classification matrix comes in.

This guide is designed to help IT and security managers understand what a data classification matrix is, why it’s crucial for safeguarding sensitive data, and how to create one to keep your organisation’s information secure.

Whether you’re working with personal, financial, or confidential business data, a solid classification system can make all the difference in staying compliant with regulations and reducing the risk of data breaches.

What is a data classification matrix and why is it important?

With the data classification market projected to reach approximately $9.5 billion by 2031, it’s clear that organisations are placing greater emphasis on managing their data effectively.

A key part of that process is using a data classification matrix—a tool designed to categorise data based on its sensitivity, risk level, and access requirements.

A data classification matrix allows businesses to sort information into categories like "Public," "Internal," "Confidential," and "Highly Confidential."

This helps organisations enforce the right security measures for each category, ensuring that sensitive information is protected while less critical data is handled more freely.

Why does this matter? Proper classification is crucial for protecting sensitive data, complying with regulations like GDPR and HIPAA, and preventing data breaches.

Without a structured approach to data management, companies run the risk of mishandling information, which could lead to costly breaches or compliance issues.

How can organisations create and use a data classification matrix to classify data?

Creating a data classification matrix might seem like a daunting task, but breaking it down into manageable steps can make the process straightforward and effective. Here’s how organisations can create and use one to classify their data properly:

1. Identify data categories

‍Start by defining the types of data your organisation handles. Common categories include "Public," "Internal," "Confidential," and "Restricted." This initial step is crucial, as it sets the foundation for your matrix.

2. Define access levels for each category

‍Not all data is created equal. Establish who can access what based on the sensitivity of the data. For instance, confidential information might only be accessible to specific team members, while public data could be available to everyone.

3. Assign data owners responsible for classification

‍Designating individuals or teams as data owners ensures accountability. They will oversee the classification process and make decisions about how data should be handled based on its category.

4. Implement encryption and security protocols

‍For sensitive data, strong security measures are essential. Encrypt data in transit and at rest, and establish security protocols that align with the sensitivity of the information.

5. Set retention policies:

It’s important to know how long you need to keep different types of data. Create policies for data retention that specify when data should be archived or deleted, ensuring compliance with regulations.

Once the matrix is established, it’s time to apply it across different teams, such as IT, HR, and finance. Make sure everyone understands their roles in maintaining data security and compliance.

Regularly update the matrix as your data changes; after all, data is not static. Keeping your classification matrix up to date is vital for effective data governance.

It’s worth noting that organisations that primarily rely on manual methods face significant risks: 86% of companies using mostly manual methods experience data breaches, compared to only 55% of companies using mostly or fully automated methods.

By embracing technology, you can significantly reduce the risk of breaches and better protect your sensitive data.

If you’d like an example of what a data classification matrix looks like, we’ve provided a sample template here.

What are the best practices for creating a data classification matrix?

Creating a data classification matrix is an essential step in protecting your organisation’s sensitive information. To ensure your matrix is effective, here are some best practices to consider:

1. Keep the matrix simple

When it comes to categorising data, less is often more. Aim for no more than 3-4 categories. This simplicity not only makes it easier for your team to understand but also reduces the chances of misclassification.

2. Regularly review and update data classifications

The digital landscape is constantly changing, and so is the data your organisation handles. Regularly revisiting your data classifications helps ensure they remain relevant and effective. Schedule periodic reviews to assess any changes in data sensitivity or compliance requirements.

3. Assign clear ownership for each category of data

Designating specific individuals or teams as data owners creates accountability. They will be responsible for monitoring their designated categories and ensuring that data is classified correctly and handled appropriately.

4. Implement audit trails to monitor access and usage

Keeping track of who accesses what data is critical. Implement audit trails that log access and usage patterns, which can help you identify any unusual activities or potential breaches. This monitoring is key to maintaining trust and security within your organisation.

5. Use encryption and access controls for sensitive categories

For your most sensitive data, comprehensive security measures are a must. Ensure that encryption is in place and that access controls are strictly enforced. This way, only authorised personnel can access the most critical information, further safeguarding your data.

Adopting these best practices not only enhances your data security but also improves your overall incident response. In fact, companies with good data classification systems detect security issues faster—24% spot incidents within minutes, and 43% within days.

How can Metomic help?

Metomic is here to simplify your data management and protection processes. Here’s how we can assist:

• Automate data discovery and classification in SaaS environments: Our advanced technology automates the identification and classification of sensitive data across various platforms, reducing manual work and ensuring accurate data handling.
• Provide tools to enforce security measures in real time: Metomic equips you with tools to implement security measures as soon as data is classified. Whether it’s setting access controls or applying encryption, you can be confident your sensitive data is protected.
• Customisable templates that align with specific business needs: We offer flexible templates that you can tailor to meet your organisation's unique requirements. This ensures that your data classification matrix complies with regulations while aligning with your business goals.

Getting started with Metomic

Embarking on your journey with Metomic is straightforward and can greatly improve your data classification and compliance initiatives.

Here’s how you can get started:

• Free risk assessment: Begin with a complimentary risk assessment to uncover potential weaknesses in your data security. Metomic can help identify risks across various platforms, including Google Drive, Slack, and other cloud services.
• Schedule a personalised demo: If you’d like to explore how our solutions can support your organisation, book a personalised demo with our security experts. They will guide you through how Metomic can be adapted to fit your unique requirements.
• Reach out to us: Should you have any questions or need additional information, feel free to contact our team. We’re here to assist you in developing a comprehensive data classification strategy and to address any queries you may have.