How can you identify and classify sensitive data in IT outsourcing?

1 What is sensitive data?

Sensitive data is any information that can cause harm, loss, or damage if it is disclosed, modified, or destroyed without authorization. Sensitive data can include personal data, such as names, addresses, ID numbers, health records, or financial information. It can also include business data, such as trade secrets, intellectual property, customer data, or strategic plans. Sensitive data can be stored in different formats, such as documents, databases, emails, or cloud services.

2 Why is sensitive data classification important?

Sensitive data classification is the process of assigning categories or labels to data based on its sensitivity level and the impact of a potential breach. Sensitive data classification is important for several reasons. First, it helps you comply with legal and regulatory requirements, such as GDPR, HIPAA, or PCI-DSS, that may apply to your data. Second, it helps you establish data security policies and procedures, such as encryption, access control, or backup, that are appropriate for each category of data. Third, it helps you monitor and audit your data security performance and identify any gaps or issues.

3 How to identify sensitive data in IT outsourcing?

Identifying sensitive data in IT outsourcing is an ongoing process that requires collaboration and communication between you and your outsourcing partner. To do this, you should conduct a data inventory, which should include information such as the source, location, format, owner, and purpose of the data. Additionally, assess the sensitivity level of each data item based on criteria relevant to your business and industry. For example, you can use categories such as public, internal, confidential, or restricted. Once you have assessed the data sensitivity, document the data classification and communicate it to your outsourcing partner. Be sure to update the data classification whenever there are changes in the data or the business context.

4 How to classify sensitive data in IT outsourcing?

Classifying sensitive data in IT outsourcing is not only about assigning labels, but also about applying the right data security measures and controls for each category. To do this, you should start by defining the data security objectives that you want to achieve, such as confidentiality, integrity, availability, or accountability. Then, select the data security methods that are suitable for your data and your outsourcing partner; for example, you can use encryption, hashing, masking, or tokenization to protect confidentiality. Finally, implement the data security controls necessary to ensure effectiveness and compliance; for example, you can use keys, certificates, passwords, or roles to manage access and use of your data.

5 How to monitor and review sensitive data in IT outsourcing?

Monitoring and reviewing sensitive data in IT outsourcing is essential to ensure that your data security policies and procedures are followed and updated. To do this, you should first establish the data security metrics for each category of data, such as the number of incidents, the time to resolution, or customer satisfaction. Then, collect and analyze the data security data using tools such as logs, reports, dashboards, or alerts to identify trends or anomalies in your data security performance. Finally, implement and communicate the data security improvements by using actions such as training, feedback, or audits to address any issues or gaps in your data security performance and impact.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?