Data Classification aims to achieve systematic organization of data based on sensitivity and regulatory requirements in information security. By categorizing data into classes, organizations can apply relevant security measures, ensuring that sensitive information is adequately protected. This process helps in compliance with legal obligations such as GDPR and improving overall risk management strategies. Effective data classification also enhances incident response and data retrieval processes, enabling quick access to necessary information while minimizing exposure to data breaches and ensuring proper access controls are in place.