When Implementing a Data Classification Program, Why Is It Important

question 259

Multiple Choice

When implementing a data classification program, why is it important to avoid too much granularity?

• A) The process will require too many resources
• B) It will be difficult to apply to both hardware and software
• C) It will be difficult to assign ownership to the data
• D) The process will be perceived as having value

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Definitions:

Nondiversifiable Risk

The portion of an investment's risk that cannot be eliminated through diversification, often associated with market-wide risks.

Systematic Risk

The danger that affects the whole market or a part of the market, which cannot be reduced by diversifying investments.

Unique Risk

A risk that affects a very small number of assets, also known as unsystematic risk, specific risk, or idiosyncratic risk, and can be largely eliminated by diversification.

Market Risk

The risk of losses in investments due to factors that affect the overall performance of the financial markets, including economic, political, and geopolitical events.