Which of the following best describes incident classification?

Incident classification involves organizing incidents into defined categories based on their characteristics and relevance. This practice allows for a systematic approach to managing and responding to incidents, making it easier to identify patterns, prioritize issues, and allocate resources effectively. By categorizing incidents, teams can better assess the severity, impact, and required response, facilitating quicker resolution and improving overall efficiency in incident management.

In contrast, determining the financial impact of incidents focuses specifically on the economic aspect and does not encompass the broader methodology of organizing incidents. Recording software releases deals with version control and documentation rather than classifying incidents. Identifying software development costs pertains to budgeting and financial analysis, which again is outside the scope of incident classification.