- A
Azure Policy to enforce tagging
Why wrong: Azure Policy is for governance and compliance, not a security layer.
- B
Network security groups (NSGs) on subnets
NSGs provide network-level security by filtering traffic.
- C
Data classification and labeling
Data classification helps identify sensitive data and apply appropriate controls.
- D
Encryption at rest for storage accounts
Encryption at rest protects data if physical media is compromised.
- E
Dynamic data masking for all databases
Why wrong: Dynamic data masking is a feature, not a defense-in-depth layer; it's part of access control.
Quick Answer
The answer is encryption at rest for storage accounts, network security groups, and Azure role-based access control. Encryption at rest ensures data is protected even if physical storage media is compromised, while network security groups enforce network-layer segmentation by filtering traffic based on IP addresses, ports, and protocols, limiting lateral movement after a breach. On the Microsoft Azure Data Engineer Associate DP-203 exam, defense-in-depth questions test your understanding of layered security controls—not just one solution—so watch for distractors like a single firewall or a vague “encryption in transit” option that omits the storage layer. A common trap is assuming network security groups only apply to VMs, but they are critical for subnet-level perimeter defense in data pipelines. Remember the mnemonic “REN” for the three core components: Role-based access control, Encryption at rest, and Network security groups.
DP-203 Design and implement data security Practice Question
This DP-203 practice question tests your understanding of design and implement data security. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Which THREE components are part of a defense-in-depth strategy for data security in Azure?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Network security groups (NSGs) on subnets
Network security groups (NSGs) are a fundamental component of a defense-in-depth strategy because they provide network-layer segmentation and filtering. By applying NSGs to subnets, you can control inbound and outbound traffic based on source/destination IP addresses, ports, and protocols, creating a perimeter defense that limits lateral movement in case of a breach.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Azure Policy to enforce tagging
Why it's wrong here
Azure Policy is for governance and compliance, not a security layer.
- ✓
Network security groups (NSGs) on subnets
Why this is correct
NSGs provide network-level security by filtering traffic.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Data classification and labeling
Why this is correct
Data classification helps identify sensitive data and apply appropriate controls.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Encryption at rest for storage accounts
Why this is correct
Encryption at rest protects data if physical media is compromised.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Dynamic data masking for all databases
Why it's wrong here
Dynamic data masking is a feature, not a defense-in-depth layer; it's part of access control.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse governance controls (like Azure Policy tagging) with actual security controls, or they assume dynamic data masking is a core defense layer when it is merely a data obfuscation feature that does not prevent unauthorized access or encryption.
Detailed technical explanation
How to think about this question
Defense-in-depth in Azure data security layers include physical security, identity and access management (IAM), network security (e.g., NSGs, Azure Firewall), encryption (at rest and in transit), and data classification. NSGs operate at the network layer (Layer 3/4) and contain default rules that block all inbound traffic from the internet unless explicitly allowed; they also support service tags and application security groups for granular control. In a real-world scenario, an NSG on a subnet containing Azure SQL Database would block direct public access, forcing traffic through a private endpoint or VPN, thus reducing the attack surface.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Questions learners often ask
What does this DP-203 question test?
Design and implement data security — This question tests Design and implement data security — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Network security groups (NSGs) on subnets — Network security groups (NSGs) are a fundamental component of a defense-in-depth strategy because they provide network-layer segmentation and filtering. By applying NSGs to subnets, you can control inbound and outbound traffic based on source/destination IP addresses, ports, and protocols, creating a perimeter defense that limits lateral movement in case of a breach.
What should I do if I get this DP-203 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
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Last reviewed: Jun 11, 2026
This DP-203 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the DP-203 exam.
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