Denormalization involves transforming normalized database relations into unnormalized physical tables to improve performance. This is done by reducing the number of necessary joins. While it improves speed, it also risks data duplication, wasted storage, and integrity issues. Common situations for denormalization include one-to-one relationships, many-to-many relationships with attributes, and reference data. Physical files are portions of disk storage allocated for storing records. File organization techniques determine how records are physically arranged, such as sequentially or through indexing, and affect retrieval speed, storage usage, and data protection.