Answer is C. Data classification is the process of categorizing data based on its sensitivity and importance. For applications containing customer personal data, classifying the data helps determine the appropriate level of access privileges by aligning access controls with the sensitivity of the information. For example, highly sensitive customer data may require stricter access controls, whereas less sensitive data might have more relaxed access policies. This ensures that only authorized individuals with a legitimate need can access sensitive personal data, minimizing the risk of unauthorized access or data breaches. D is not accurate since ACLs are lists that define which users or systems can access specific resources. Before creating ACLs, data classification must first be performed to determine which data requires higher protection. ACLs are a mechanism to enforce access once classification has been done.
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