DP-300 Implement a secure environment Practice Question
You are the Azure SQL Database administrator for a healthcare company. A new compliance requirement mandates that all data at rest in Azure SQL Database be encrypted with a customer-managed key (CMK) stored in Azure Key Vault, and that you can revoke access to the key at any time. The database is currently encrypted with the default service-managed key. What should you do first to meet this requirement?
⚠ Common exam trap
Candidates often confuse Always Encrypted with TDE; Always Encrypted protects individual columns and does not provide database-level encryption at rest with a revocable customer-managed key.
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
✓
Create an Azure Key Vault, generate a key, and configure the SQL server's Transparent Data Encryption (TDE) protector to use that key.
The requirement is for encryption at rest with a customer-managed key that can be revoked. Azure SQL Database TDE supports customer-managed keys stored in Azure Key Vault. The first step is to create the Key Vault and key, then configure the server's TDE protector to use it. This ensures the database encryption key is protected by the customer key, and revoking access in Key Vault effectively blocks decryption.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Enable dynamic data masking on all columns containing sensitive data.
Why it's wrong here
Dynamic data masking obscures data returned to non-privileged users but does not encrypt data at rest. It is a presentation-layer feature and does not meet the compliance requirement for encryption with a customer-managed key. Masking also does not allow key revocation, which is a key part of the requirement.
- ✗
Enable Always Encrypted on all sensitive columns using a column master key stored in Azure Key Vault.
Why it's wrong here
Always Encrypted protects specific columns in transit and at rest at the client side, but it does not satisfy the requirement for database-level encryption at rest with a customer-managed key. The scenario asks for encryption of all data at rest, which is handled by TDE, not Always Encrypted. Always Encrypted also requires application changes and does not encrypt the entire database.
- ✗
Configure an Azure SQL Database auditing policy to send logs to a storage account encrypted with a customer-managed key.
Why it's wrong here
Auditing logs are separate from the database data files. Encrypting the audit storage account with a CMK does not encrypt the database itself. The requirement is for data at rest in Azure SQL Database, which is accomplished through TDE with a customer-managed key, not through audit log storage encryption.
- ✓
Create an Azure Key Vault, generate a key, and configure the SQL server's Transparent Data Encryption (TDE) protector to use that key.
Why this is correct
This is the correct first step because Azure SQL Database TDE with customer-managed keys requires an Azure Key Vault (or Managed HSM) to store the asymmetric key, and then the logical server's TDE protector must be pointed to that key. Once configured, the database's data encryption key is wrapped by the customer key, allowing revocation via Key Vault permissions.
Go deeper
Related to this question
Learn chapter
Managing Identity and Access for Azure SQL
Key term
Transparent Data Encryption
Transparent Data Encryption is a security feature that automatically encrypts data written to a database and decrypts it when read, without requiring any changes to the application.
Key term
Azure SQL Performance Tuning
Azure SQL Performance Tuning is the process of optimizing the speed and efficiency of queries and database operations in Microsoft Azure SQL Database or SQL Managed Instance to reduce latency and improve throughput.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Microsoft exam blueprint
This DP-300 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-300 exam.