Data Classification Labels and Tagging System
Overview
Data classification labels are the operational mechanism through which classification policy is enforced across the enterprise. Labels attach classification metadata to data assets — documents, emails, database records, and cloud resources — enabling automated enforcement of handling requirements through DLP policies, access controls, and encryption. This skill covers the design and implementation of a labelling system using Microsoft Purview Information Protection as the primary platform, with architecture patterns for automated labelling, user-applied labelling, label inheritance, and cross-platform propagation.
Label Taxonomy
Vanguard Financial Services Label Hierarchy
Vanguard Classification Labels
├── Public
│ └── (no sub-labels)
├── Internal
│ └── Internal - Project Confidential
├── Confidential
│ ├── Confidential - Customer Data
│ ├── Confidential - Employee Data
│ ├── Confidential - Financial Data
│ └── Confidential - Legal
└── Restricted
├── Restricted - Special Category (Art. 9)
├── Restricted - Criminal Data (Art. 10)
├── Restricted - AML Investigation
└── Restricted - Board & Strategy
Label Properties
| Label | Colour | Visual Marking | Encryption | DLP Policy | Auto-Apply |
|---|
| Public | Green | Footer: "Vanguard Financial Services — Public" | None | None | No |
| Internal | Blue | Footer: "Vanguard Financial Services — Internal Use Only" | Optional | Warn on external | No |
| Confidential | Amber | Header + Footer: "CONFIDENTIAL" | Azure RMS (AES-256) | Warn + audit external; block personal email | Yes (when PII detected with >85% confidence) |
| Restricted | Red | Header + Footer: "RESTRICTED" with red background; watermark on print | Azure RMS (AES-256, double key encryption) | Block all external; block USB/print; alert DPO | Yes (when Art. 9/Art. 10 data detected with >85% confidence) |
Microsoft Purview Implementation Architecture
Component Architecture
┌─────────────────────────────────────────────────────────────────┐
│ Microsoft Purview │
│ │
│ ┌──────────────┐ ┌──────────────┐ ┌──────────────────────┐ │
│ │ Sensitivity │ │ Auto-labelling│ │ DLP Policies │ │
│ │ Labels │ │ Policies │ │ (endpoint, email, │ │
│ │ (definitions) │ │ (rules) │ │ SharePoint, Teams) │ │
│ └──────┬───────┘ └──────┬───────┘ └──────────┬───────────┘ │
│ │ │ │ │
│ ▼ ▼ ▼ │
│ ┌──────────────────────────────────────────────────────────┐ │
│ │ Unified Label Application Engine │ │
│ └──────────────────────────────────────────────────────────┘ │
│ │ │ │ │
└─────────┼──────────────────┼──────────────────────┼──────────────┘
▼ ▼ ▼
┌─────────────┐ ┌──────────────┐ ┌──────────────────────┐
│ Office Apps │ │ SharePoint/ │ │ Endpoint DLP │
│ (Word, Excel,│ │ OneDrive │ │ (Windows devices) │
│ Outlook) │ │ │ │ │
└─────────────┘ └──────────────┘ └──────────────────────┘
Auto-Labelling Configuration
Policy 1: Confidential — Customer PII Detection
| Setting | Value |
|---|
| Policy Name | VFS-AutoLabel-Confidential-CustomerPII |
| Scope | All SharePoint sites, OneDrive accounts, Exchange mailboxes |
| Conditions | Content contains ANY of: UK National Insurance Number (HIGH confidence), IBAN (HIGH), Vanguard Account Number (HIGH), Credit Card (HIGH + Luhn validated) |
| Minimum count | 1 instance of any SIT at HIGH confidence |
| Label applied | Confidential - Customer Data |
| Priority | 2 (overridden by Restricted auto-label) |
Policy 2: Restricted — Special Category Detection
| Setting | Value |
|---|
| Policy Name | VFS-AutoLabel-Restricted-SpecialCategory |
| Scope | All SharePoint sites, OneDrive accounts, Exchange mailboxes |
| Conditions | Content contains ANY of: ICD-10 codes (MEDIUM+), health terminology trainable classifier (HIGH), biometric template format detection, genetic marker patterns |
| Minimum count | 1 instance at MEDIUM confidence or above |
| Label applied | Restricted - Special Category (Art. 9) |
| Priority | 1 (highest priority — overrides all other auto-labels) |
Policy 3: Restricted — Criminal Data Detection
| Setting | Value |
|---|
| Policy Name | VFS-AutoLabel-Restricted-CriminalData |
| Scope | HR SharePoint sites, Compliance SharePoint sites |
| Conditions | Content contains: DBS reference patterns, criminal conviction terminology, SAR reference numbers |
| Label applied | Restricted - Criminal Data (Art. 10) |
| Priority | 1 |
Label Inheritance Rules
| Rule | Description | Implementation |
|---|
| Container inheritance | Items in a labelled SharePoint site inherit the site's label as minimum | Site sensitivity label propagates to new items; existing items retain higher label |
| Email attachment inheritance | Attachments inherit the email's label if attachment label is lower | Outlook plugin checks attachment label vs email label on send |
| Parent-child inheritance | Child documents inherit parent folder label as minimum | SharePoint library policy; items cannot be labelled below folder label |
| No downgrade without approval | Users cannot remove or downgrade labels without justification | Label policy: require justification text for downgrade; audit log entry |
| Highest label wins | When documents are merged or combined, the highest label applies | User training + DLP monitoring for combined documents |
User-Applied Labelling
Labelling Responsibilities
| Scenario | Who Labels | How |
|---|
| New document creation | Author | Select label from Office ribbon (Word, Excel, PowerPoint) |
| New email composition | Sender | Select label from Outlook toolbar; mandatory before sending external |
| File upload to SharePoint | Uploader | Label prompt on upload if no label detected |
| Data export from system | Exporter | Label selection required before export completes |
| Physical document printing | Printer | Classification header/footer printed automatically; user selects tier if not auto-labelled |
Mandatory Labelling Policy
| Setting | Value |
|---|
| Require label on documents | Yes — all Word, Excel, PowerPoint documents must have a label before save |
| Require label on emails | Yes — for emails to external recipients; recommended for internal |
| Default label | Internal (applied if user does not select; user can override up or down) |
| Justification for downgrade | Required — user must enter text justification; logged in audit |
| Justification for removal | Required — DPO-approved exception only |
DLP Integration
DLP Policy Matrix
| Label | External Email | USB/Removable | Print | Screenshot | Cloud Upload |
|---|
| Public | Allow | Allow | Allow | Allow | Allow |
| Internal | Warn | Warn | Allow | Allow | Block (non-approved cloud) |
| Confidential | Warn + audit | Block | Secure print | Allow (watermarked) | Block |
| Restricted | Block | Block | Block (unless DPO approved) | Block | Block |
DLP Alert Routing
| Alert Severity | Label Trigger | Routing |
|---|
| Low | Internal label — external email warn overridden | Security team email |
| Medium | Confidential label — external sharing attempted | Security team + Data Owner |
| High | Restricted label — any policy trigger | DPO + CISO + immediate investigation |
| Critical | Restricted label — data exfiltration indicators | DPO + CISO + Incident Response Team + 15-minute SLA |
Label Propagation Across Platforms
Supported Platforms
| Platform | Label Method | Propagation |
|---|
| Microsoft 365 (Word, Excel, PowerPoint) | Native sensitivity label in file metadata | Full support — label travels with file |
| Outlook / Exchange | Email header X-MS-Exchange-Organization-Classification | Label persists in message store and forwarded copies |
| SharePoint Online | Document library metadata + file metadata | Dual storage — library and file level |
| OneDrive for Business | File metadata | Same as SharePoint |
| Teams | Channel/chat message metadata | Limited — file attachments inherit, message labels in compliance |
| PDF export | Visual marking (header/footer) + XMP metadata | Visual marking persists; metadata depends on PDF viewer |
| Azure SQL Database | Column-level sensitivity classification (sys.sensitivity_classifications) | Native Azure SQL feature; integrates with Purview |
| AWS S3 | Object tags (key: classification, value: tier) | AWS-native tagging; read by Macie and IAM policies |
| On-premises file shares | File metadata (NTFS ADS) via AIP Unified Labelling client | Requires AIP client installed on endpoints |
Enforcement Precedents
- ICO v Interserve Group (2022): GBP 4.4 million — failure to implement adequate data classification and labelling contributed to staff not recognising the sensitivity of data compromised in a breach
- CNIL v Free Mobile (2022): EUR 300,000 — customer personal data stored without classification or access controls; staff could access all customer data regardless of role or need
Integration Points
- classification-policy: Labelling system is the technical implementation of the classification policy
- auto-data-discovery: Discovery results trigger auto-labelling for newly detected PII
- pii-in-unstructured: PII detection in documents drives label recommendation or auto-application
- data-inventory-mapping: Labels feed the data inventory with current classification status per asset
- data-lineage-tracking: Labels propagate through data lineage — transformed data inherits source label
