Sensitivity labels help users and businesses mark information based on its level of sensitivity.
A document might be labeled Public, Internal, Confidential, or Highly Confidential.
Depending on the company’s configuration, the label can apply encryption, restrict sharing, add markings, or control who can open the file.
Labels can also help employees understand what kind of information they are handling. A clearly marked Confidential document reminds the user that it should not be shared casually.
Some organizations allow users to choose labels. Others automatically suggest or apply labels when sensitive information is detected.
The best label system is simple enough that employees can understand it.
If there are too many labels or the names are confusing, users may choose the wrong one or ignore the system entirely.
Good labeling supports good decisions without making normal work unnecessarily complicated.