Which approach is best suited for isolating potentially compromised applications to limit damage?

The best approach for isolating potentially compromised applications to limit damage is sandboxing. This technique involves running applications in a controlled environment where they are isolated from the rest of the operating system and network. By doing so, any malicious actions or security breaches that occur within the sandbox do not affect the host system or other applications. This containment measure allows security teams to analyze and test potentially harmful applications without risking wider system compromise.

In contrast, containerization and virtualization relate more to managing entire environments or applications but do not specifically provide that immediate isolation for testing or running untrusted code in the same way that sandboxing does. Network segmentation, while it can limit access to compromised systems, does not inherently provide the immediate isolation and analysis environment that sandboxing offers for risky applications.