This policy establishes a simple but critical framework for your business: not all data is equal. It provides a clear 3-tier system (Public, Internal, Confidential) to help your team understand what data is sensitive and how it must be protected.
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Protect Your Most Valuable Data: Apply the strongest protections (like encryption and strict access controls) to your most critical data, such as financial records and customer PII.
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Prevent Accidental Data Leaks: By clearly labeling documents and files, you reduce the risk of employees accidentally sharing sensitive information with the wrong people.
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Satisfy GDPR & ISO 27001:2022: Meet key compliance requirements by demonstrating a formal, risk-based approach to data protection.
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Empower Employee Decisions: Give your staff a simple system to follow, so they can confidently handle information according to its sensitivity.
Read Full Overview
The Data Classification and Labeling Policy for SMEs is an essential document designed to standardize how information is categorized and protected within small and medium enterprises. This policy outlines a comprehensive framework for classifying data based on its sensitivity, business impact, and legal obligations, thereby ensuring that all organizational data is handled appropriately throughout its lifecycle. Adhering to internationally recognized standards such as ISO/IEC 27001:2022, it mandates a minimum three-tier classification model: Public, Internal, and Confidential. Each level dictates specific handling requirements to prevent unauthorized access and ensure compliance. This policy is particularly crucial for SMEs, which often have limited resources but must still meet rigorous security standards.
What's Inside
- 3-Tier Classification Scheme
- Data Labeling Requirements
- Handling Rules for Each Level
- Protecting Confidential Data
- Storage & Access Controls
- Declassification & Retention
- Roles & Responsibilities
- Compliance & Enforcement
Built for Leaders, By Leaders
This policy makes a complex topic simple, giving your business a practical way to manage data risk and prove to clients that you take data protection seriously. It was authored by a security leader to be a practical framework that stands up to auditor scrutiny.
Authored by an expert holding:
Framework Compliance
🛡️ Supported Standards & Frameworks
This product is aligned with the following compliance frameworks, with detailed clause and control mappings.
| Framework | Covered Clauses / Controls |
|---|---|
| ISO/IEC 27001:2022 | 5.38.1 |
| ISO/IEC 27002:2022 | 5.125.13 |
| NIST SP 800-53 Rev.5 | AC-16MP-3MP-5 |
| EU GDPR | Art. 5Art. 32 |
| EU NIS2 | Art. 21(2)(a) |
| EU DORA | Art. 5(8) |
| COBIT 2019 | BAI03.05DSS05.02 |
Part of a Complete ISMS Toolkit
This policy is one of 37 documents in our complete toolkit. When implemented as a set, our framework helps you achieve comprehensive compliance across major standards.
100%
ISO 27001:2022
95%
NIST
88%
NIS2
75%
DORA
70%
GDPR
Related Policies
This foundational policy is directly linked to the following organizational security policies to ensure comprehensive alignment and traceability across the ISMS.
P2S - Governance Roles & Responsibilities Policy
Assigns accountability for policy ownership and enforcement.
P4S - Access Control Policy
Aligns system access permissions with data classification levels.
P12S - Asset Management Policy
Tracks the physical and digital assets that store classified data.
P17S - Data Protection and Privacy Policy
Governs protection of personal data, often classified as Confidential.
P30S - Incident Response Policy
Defines response procedures for data exposure incidents.
About This Policy
A Data Classification and Labeling Policy provides a systematic approach to managing and protecting information based on its level of sensitivity. For Small and Medium-sized Enterprises (SMEs), where data is a critical asset, this policy creates a simple framework to categorize all data into tiers such as 'Public,' 'Internal,' and 'Confidential.' This process is fundamental to any effective security program, as it dictates the specific handling requirements for each data type.
By implementing this policy, your organization can ensure that the most sensitive data receives the highest level of protection, such as encryption and restricted access, thereby reducing the risk of costly data breaches. It is a key requirement for achieving compliance with standards like ISO 27001:2022 and regulations like GDPR. This policy empowers employees to make consistent, secure decisions about data handling, fostering a strong security culture and demonstrating a commitment to data protection to both customers and auditors.
