200-201 Security Policies and Procedures Practice Question
A security analyst is reviewing the organization's data classification policy. The policy defines four levels: Public, Internal, Confidential, and Restricted. A new marketing campaign document contains strategic pricing information that, if disclosed, could cause competitive harm. According to typical data classification practices, how should this document be classified?
⚠ Common exam trap
The trap here is assuming that any sensitive business information must be Restricted, when most policies reserve that level for the most severe impact and use Confidential for competitive harm.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Confidential
Data classification policies typically define Confidential as information whose unauthorized disclosure could cause harm, including competitive harm. Strategic pricing information fits that definition, so it should be classified as Confidential. Public and Internal are too low, and Restricted is generally reserved for more severe impact, making Confidential the appropriate level for this document.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Confidential
Why this is correct
Confidential data is defined as information whose unauthorized disclosure could cause harm to the organization, such as competitive harm. Strategic pricing information fits this definition because its exposure could damage the company's market position. This classification aligns with the policy's description and ensures appropriate handling controls are applied.
- ✗
Internal
Why it's wrong here
Internal data is generally not for public release but typically causes limited harm if exposed. Strategic pricing information that could cause competitive harm exceeds the impact threshold for Internal. Internal classification is usually for routine business information, not sensitive strategic data, so this classification is too low.
- ✗
Restricted
Why it's wrong here
Restricted is typically the highest classification, reserved for data whose disclosure could cause severe damage, such as legal, financial, or national security consequences. While strategic pricing is sensitive, it does not usually rise to the level of Restricted. Classifying it as Restricted would over-protect the data and potentially impede business operations.
- ✗
Public
Why it's wrong here
Public data is intended for unrestricted release and would cause no harm if disclosed. Strategic pricing information that could cause competitive harm clearly does not fit this classification. Labeling it Public would violate the policy and expose the organization to competitive disadvantage, so this choice is incorrect.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Cisco exam blueprint
This 200-201 practice question is part of Courseiva's free Cisco certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the 200-201 exam.