Data classification serves several purposes that benefit organizations across various industries and domains. Firstly, it makes organizational data accessible by structuring and organizing large volumes of data. Categorizing data into specific classes enables easy retrieval and management of critical information, enhancing operational efficiency.

Secondly, data classification plays a crucial role in protecting and securing data. By labelling data based on its sensitivity levels, organizations can prioritize security measures to safeguard different types of data effectively. This helps in mitigating risks and preventing unauthorized access or misuse.

Moreover, data classification assists organizations in preparing for compliance with industry-specific regulations. By identifying vulnerable data sources and ensuring compliance readiness, organizations can adhere to legal and regulatory requirements, minimizing potential legal risks.

Lastly, unstructured data classification helps organizations manage the entire data lifecycle. It enables them to determine which data sources need to be retained and which can be safely eliminated, reducing storage costs and potential legal liabilities.

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