The information classification scheme should:

The information classification scheme is crucial in establishing how an organization handles various types of information according to their sensitivity and the potential consequences of unauthorized access or disclosure. When considering the possible impact of a security breach, this assessment informs organization decisions regarding data protection measures and helps prioritize security resources effectively.

Assessing the potential impact of a breach ensures that information is classified appropriately, aligning the level of security controls with the risk level. For example, highly sensitive data that could lead to significant financial or reputational damage if compromised should be classified at a higher level and given more stringent security measures compared to less sensitive information.

While classifying personal information in electronic form is important, it does not address the broader scope of impact analysis necessary for an effective classification scheme. Similarly, while it may be beneficial for the information security manager to oversee the classification process, it is not a requirement that they perform it exclusively, as classification can involve various stakeholders throughout the organization. Lastly, while classification can be informed by a risk assessment, stating that it must be based solely on that assessment may overlook other critical factors, such as regulatory requirements and business objectives. Hence, considering the possible impact of a security breach directly aligns with the primary goals of the information classification scheme.