By classifying and encrypting customer Personally Identifiable Information (PHI), you are specifically guarding against the risk of Sensitive Data Exposure. This OWASP security risk involves the accidental or unlawful exposure of protected data to unauthorized individuals. Encryption serves as a critical defense mechanism by ensuring that, even if data is accessed without authorization, it remains unintelligible and useless to the attacker without the decryption keys. Data classification further supports this by identifying which data is sensitive and requires such protections, ensuring that appropriate security controls are applied to prevent exposure.