ISACA guidance ties data classification directly to the organization’s risk context. ISACA notes that data classification defines the threshold beyond which damage to the organization may occur, and recent ISACA guidance also states that data-centric controls should align directly to business risk. That means classification should first reflect how sensitive the information is from the standpoint of business impact, not simply standards, policy wording, or retention schedules.
Option B is useful as a reference, but industry standards are secondary to the organization’s own risk exposure and business impact. Option C is also secondary because security policy should itself be based on business risk. Option D matters for lifecycle governance, but retention requirements do not drive the fundamental sensitivity classification of information.
References (Official ISACA):
ISACA Journal, Security Adjustments to Strengthen the Bond Between Risk Registers and Information.
ISACA, Detect, Prevent, Comply: The Three Pillars of Modern DLP Use Cases.
ISACA, Navigating Risk When Transitioning to the Cloud.
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