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Use of labels and information classification to reduce cybersecurity risks

WWatcher

Corporate cybersecurity has become a top-tier challenge for organizations across all sectors. The growing digitalization, hybrid work, and use of cloud services have significantly expanded the attack surface. One of the most effective yet underutilized measures is the classification of information and its proper labeling.

This approach, supported by standards such as ISO/IEC 27001 and ISO/IEC 27002, as well as guidelines from NIST or Spain’s National Security Framework (ENS), directly helps minimize the risks of data leaks, unauthorized access, and misuse. When each piece of information is correctly classified, every user knows exactly how to handle it.

Why information classification is essential in cybersecurity

In many companies, employees access data without knowing its sensitivity level. This creates a critical gap between the protection expected and the protection actually applied. Any mistake—even an unintentional one, such as attaching the wrong document to an email or sharing an unencrypted file—can lead to the leakage of confidential information.

Classifying information allows companies to:

  • Define security controls proportional to risk

  • Facilitate legal compliance (GDPR, LOPDGDD)

  • Ensure traceability of access and usage

  • Strengthen a culture of protection within the organization

  • Reduce the impact of incidents and data leaks

According to recent reports from the Spanish Data Protection Agency (AEPD), most reported security breaches originate from human error or inadequate information management. Classification acts as a direct preventive measure in this scenario.

How information classification should be done

The process should start with a rigorous assessment of the types of information the organization handles and the risks associated with their exposure. Next, levels are assigned following a standardized taxonomy.

The most common levels (recommended by standards like ISO 27002 and applied by public organizations in Spain) are:

  • Public: Information accessible without consequences for the organization.

  • Internal Use: Operational information that must remain within the company.

  • Confidential: Critical data whose access should be limited to specific roles.

  • Restricted or Highly Confidential: Sensitive information whose disclosure could cause significant harm (especially protected personal data, strategic financial information, intellectual property, etc.).

Each category should include specific handling requirements: mandatory encryption, password protection, prohibition of external sharing, secure retention or destruction, etc.

The role of labeling: Daily protection

Classification is only effective when operationalized through a clear and visible labeling system.

Labels allow any user to instantly identify a document’s or data’s sensitivity level. Additionally, when integrated into security tools like Data Loss Prevention (DLP) or automatic encryption solutions, labels ensure that:

  • Restricted information cannot be sent to unauthorized recipients

  • Default access permissions are applied

  • Any actions on sensitive data are logged for later audits

Major technology platforms have already incorporated these models. Microsoft Information Protection and Google Data Classification are examples of how labeling can be automated based on content and context.

Benefits of implementing an information classification and labeling system as a cybersecurity measure

Implementing a classification and labeling system reduces risks across multiple dimensions:

Reduction of human risk

When a confidential document is properly identified, it is less likely to be mishandled or shared accidentally.

Prevention of data leakage

Automatic controls act before an incident occurs (DLP policies linked to labels).

Smaller attack surface

Classifying information enables the application of least privilege principles, preventing unnecessary access and reducing the impact of potential intrusions.

Greater resilience against cyberattacks

If an attack succeeds, its scope is limited because high-value information is not freely accessible.

Support for regulatory compliance

GDPR requires enhanced protection of personal data. Proper classification is the first step in demonstrating diligence and proactive responsibility.

Implementation: How to apply classification and labeling

To implement an effective classification and labeling strategy, it is recommended to:

  • Create an inventory of information assets

  • Analyze the risks associated with each type of data

  • Define classification categories

  • Integrate with labeling and automated security tools

  • Implement role-based access controls

  • Conduct regular audits and continuous improvement

Cybersecurity leaders should drive the project, but its success depends on the involvement of the entire organization, from top management to every employee handling data.

Classification and labeling are silent but decisive defenses. They do not require large investments but provide immediate and sustained returns in terms of security, compliance, and control. In a world where cyberattacks and data breaches are commonplace, knowing what information you have, its value, and how to manage it is part of the DNA of a resilient company.

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