When building or maintaining a system, one of the first and most critical steps in the security process is something called security categorization. This step is often done early in the system development life cycle—but why is it so important?
The simple answer is:
Security categorization determines the security requirements of the system.
Let’s break down what that means—and why it matters so much.
What Is Security Categorization?
Security categorization is the process of figuring out:
- What kind of data the system will handle
- How sensitive that data is
- What impact it would have if that data were lost, leaked, or tampered with
This assessment helps decide if the system should be protected at a low, moderate, or high security level.
Why It Must Be Done Correctly
If you categorize too low, your system may lack the protections it needs—leaving you open to data breaches, system failures, or legal trouble.
If you categorize too high, you might waste time and money on unnecessary security controls that slow down operations.
In both cases, the system won’t meet the actual security needs of the organization.
What Happens After Categorization?
Once the system is categorized, the next steps depend on it:
- What kind of security controls will be applied
- How the system will be tested and certified
- How it will be monitored and maintained over time
That’s why the initial categorization decision drives the entire security planning process.
Real-World Example
Let’s say you’re building a system to store:
- Employee lunch orders → Low impact
- Patient medical records → High impact
You obviously wouldn’t want to protect both systems the same way. Categorizing them properly ensures that the medical system gets encryption, access controls, and auditing—while the lunch app doesn’t get weighed down with unnecessary red tape.
Final Thought
Security categorization is like setting the foundation for a building. If it’s done wrong, everything built on top of it could be unstable. But when it’s done right, it gives the project a clear direction and ensures the system is protected based on what’s truly at risk.
Get it right early—and review it regularly. It’s a simple step that can save big headaches later.

