Classifications

Simply put, Labels are categories applied to documents or emails for the purposes of determining how they will be handled. This can mean that they will be retained, or it could mean they will be deleted after a certain time has passed. Classification refers to the combination of a document label and a set of policies associated with that label.

Labels

By default, Office 365 has no labels created. Therefore, you will need to create your own or hire a firm specializing in document and information security to help you do this. 

Here are some examples: 

• Company internal: Documents that may not be shared outside the organization.
• Client confidential: Documents with proprietary information controlled by a nondisclosure agreement (NDA) with a customer. To limit liability, these typically need to be deleted once they are no longer needed. 
• Controlled Unclassified Information (CUI): Sometimes also named Sensitive but Unclassified (SBU).
• Employee file: Document must be retained for HR compliance...