What is "system categorization"?

System categorization involves assessing and defining the potential impact that a security breach could have on an organization’s operations, assets, or individuals. This process is crucial for effectively managing risk and ensuring that appropriate security controls are implemented based on the level of potential impact determined during the categorization process.

When categorizing information systems, organizations typically consider factors such as the information being processed, the criticality of the system to business functions, and the potential consequences of unauthorized access or data loss. By accurately classifying systems according to their impact levels, organizations can prioritize resources and tailor security controls effectively. This practice aligns with various security frameworks and standards, helping to ensure compliance and resilience against threats.

In contrast, the other options do not capture the essence of system categorization in the context of information security. Classifying systems based on user roles, creating a list of system owners, or determining system software requirements are important organizational tasks but do not relate directly to the concept of evaluating and categorizing systems based on the potential impact of security breaches.