Sensitive information refers to data that must be protected due to its confidential nature. This includes personal details like Social Security numbers, bank account information, and medical records. If such information is disclosed without permission, it can lead to identity theft, financial loss, or privacy violations. Organizations often have policies in place to safeguard sensitive information. This can involve using encryption, secure passwords, and access controls to ensure that only authorized individuals can view or handle this data. Proper handling of sensitive information is crucial for maintaining trust and compliance with laws like HIPAA and GDPR.