Sensitive data handling refers to the practices and procedures used to safeguard sensitive information, which includes personal, financial, or proprietary data that requires a higher level of security and compliance due to its risk factors. Such data could include Social Security numbers, credit card information, personal health records, and confidential business data. Organizations must implement strict policies and technologies to ensure that this sensitive information is managed according to legal requirements and best practices, such as encryption, access controls, and regular audits.