Google Drive labels: your key to data classification, security and compliance

01/09/2023

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What are Google Drive labels?

Google Workspace is now offering the Drive labels feature for data classification and more streamlined files management. Labels are metadata that can help businesses organize, find, and apply policies to files in Google Drive.

How can Drive labels be used to classify and protect your data?

Possibly the biggest impact of labels is their ability to help businesses adhere to data security policies.

For example, you could create a label to identify files that contain sensitive information, and have each file labeled as “Confidential”, “Internal”, or “Public”. Then, you could implement a security policy that automatically blocks users from downloading files with the “Confidential” label.

That in combination with a policy that limits external sharing files with that label (for example, these files can only be shared with specific users and only with read-only (Viewer) permissions, as opposed to sharing with “Anyone with a link”), helps to ensure that confidential files are not duplicated and shared by accident or with malicious intent.

Labels can be used to identify files that fall under data protection laws, helping to ensure that your company stays compliant. For example, you could create a label that marks files that contain personal identifiable information, and block external sharing for all files with that Drive label.

How can Drive labels be used to maintain and demonstrate compliance?

How can you monitor data classification progress in your organization?

Many data protection laws and regulations, such as GDPR, HIPAA, ISO 27001, NIS2, require businesses to classify their data based on the sensitivity of the information and define appropriate levels of information security and protective measures. Google Drive Labels can help meet these requirements by providing a structured and visual way to manage data according to its sensitivity and regulatory requirements.

First, you’ll need to show that your organization is on track with data classification. But how can you tell how many files you have, how many are labeled, and how many still need labeling?

Without the right tools, this can be challenging. Fortunately, tools like Florbs make it easy by showing you this information at a glance. It even breaks down the data by organizational unit and shared drive, so you can quickly identify which teams are on track and which may need extra attention.

If your organization has been using Google Drive for several years, you’ve likely accumulated hundreds of thousands of files. Where do you even begin classifying all that unorganized data?

Start by following best practices to label your existing files in bulk. For instance, you can apply the label “Confidential” to all files in the shared drive named “Legal.” Additionally, label any files that contain the word “CV” in the title as “Contains PII.”

It’s a smart move to establish a policy that automatically labels future files created in your organization. This way, you won’t have to manage labeling manually, ensuring that every new file is consistently classified according to your organization’s standards.

Implementing a comprehensive labeling strategy can help organizations not only maintain compliance but also have a tangible way to showcase their commitment to protecting sensitive data. The visual nature of labels simplifies communication, helps prevent human errors, and ensures that data is treated with the appropriate level of security and care.

• Consistent data classification: Labels provide a standardized method for classifying data across the organization. By categorizing data into predefined labels such as "Confidential," "Internal Use Only," or "Public," businesses ensure that data is consistently evaluated and treated based on its sensitivity.

• Appropriate access permissions: Labels can be linked to specific access permissions. For instance, files labeled as "Confidential" might be restricted to authorized personnel only. By enforcing these access controls, organizations limit data exposure to individuals who have a legitimate need to access it.

• Automated security measures: Labels can trigger automated security measures such as data loss prevention (DLP) policies, or retention schedules. For example, files labeled as "Sensitive Customer Data" could automatically be subject to strict retention policies in compliance with data protection regulations.

• Audit and monitoring: Organizations may need to track who accessed, modified, or shared sensitive data. Auditing helps demonstrate that proper controls are in place to monitor data handling and mitigate risks. Labels could be helpful in quickly finding files that need to be audited: you could search for all files labeled “Confidential” in order to monitor them and to prove compliance.

• Data retention and deletion: Compliance often involves adhering to specific data retention and deletion periods. Labels can be associated with retention policies, ensuring that data is retained for the appropriate duration and deleted when it's no longer required, as mandated by regulations.

• Data sharing with third parties: When sharing data externally, labels can serve as a guide to employees. This prevents inadvertent disclosure of confidential data and ensures compliance with data protection requirements.

• Incident response: In the event of a data breach, labels can expedite the identification of compromised data. This facilitates a focused incident response by quickly assessing which sensitive data was exposed and needs immediate attention.

• Documentation and reporting: Labels offer a clear and visual way to document data handling practices. Organizations can use labeled files as evidence to demonstrate that data has been appropriately classified, secured, and managed in accordance with regulations.

• Employee training and awareness: Labels serve as visual cues to employees about the importance of data sensitivity and compliance. Training programs can use labeled examples to educate employees about proper data handling procedures.

• Regulatory audits and assessments: When regulators or auditors evaluate the organization's data practices, the presence of consistent labeling and corresponding security measures demonstrates proactive efforts toward compliance. The ability to showcase a structured data classification approach can lead to favorable audit outcomes.

How to identify data leaks using labels

Drive labels offer a powerful way to identify potential policy breaches in your organization quickly.

For instance, if your policy requires that files labeled “Top Secret” must not be shared publicly with “Anyone with the link,” wouldn’t it be great to be able to confirm that this policy is being followed? 

With Florbs File Security for Google Drive, you can effortlessly review all Drive labels across your organization along with the sharing permissions set for files with each label.

Suppose you find that 7% of files labeled “Top Secret” are, in fact, shared with “Anyone with the link” with editing rights. The tool allows you to click through directly to the file list, where you can promptly adjust the sharing settings to maintain security compliance.

You can also approach it from a different angle: ensure that none of the files shared with “Anyone with the link” are labeled as “Top Secret.”

If you do find any, the tool lets you click through to view the specific files in question, so you can instantly adjust their sharing settings to maintain security.

This process makes it easy to show that your organization is following its data policies.

By catching and fixing any sharing settings that go against your rules, you create a clear record that your files are being handled securely.

This record lets you quickly demonstrate that your organization is taking the right steps to protect sensitive information and stay compliant with data standards, such as GDPR, ISO 27001 and NIS2.

How can Drive labels be used to classify and protect your data?

Labels can also be helpful for finding files faster. For instance, it is possible to create a label for an important project, so everyone can locate all files related to this project quickly.

Drive labels are also helpful to organize your work processes. Adding fields such as “Contract Status” and “Due Date” to a label is helpful if people need to find all contracts awaiting signature and due by tomorrow.

Interested how Drive labels can enhance file organization? Find some real-life examples in our article Google Drive labels for file organization (with examples).