Data classification is the process of assigning labels or tags to data based on its sensitivity, value, and risk. Data classification is the first step in a data loss prevention (DLP) solution, as it helps to identify what data needs to be protected and how. By applying classifications to the data, the security administrator can define appropriate policies and rules for the DLP solution to prevent the exfiltration of sensitive customer data. Reference: CompTIA Security+ Study Guide: Exam SY0-701, 9th Edition, Chapter 8: Data Protection, page 323. CompTIA Security+ Practice Tests: Exam SY0-701, 3rd Edition, Chapter 8: Data Protection, page 327.