The correct answer is to enable Transparent Data Encryption (TDE) with a customer-managed key stored in Azure Key Vault. This configuration encrypts the database at rest by using a key you control, allowing independent rotation and revocation without impacting application performance, as TDE performs real-time I/O encryption and decryption of data and log files. On the Microsoft Azure Database Administrator Associate DP-300 exam, this scenario tests your understanding of the distinction between service-managed keys (default) and customer-managed keys (CMK) for TDE, often appearing in questions about compliance or key ownership. A common trap is confusing TDE with Always Encrypted—remember that TDE encrypts the entire database at rest, while Always Encrypted protects specific columns in transit and at rest. Memory tip: “TDE with CMK = you hold the key to the vault.”
DP-300 Implement a secure environment Practice Question
This DP-300 practice question tests your understanding of implement a secure environment. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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.
You have an Azure SQL Database that stores sensitive customer data. You need to ensure that the data is encrypted at rest using a customer-managed key stored in Azure Key Vault. What should you configure?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Enable Transparent Data Encryption (TDE) with a customer-managed key from Azure Key Vault.
Transparent Data Encryption (TDE) with a customer-managed key stored in Azure Key Vault encrypts the database at rest, using a key that you control and rotate independently. This meets the requirement for encryption at rest with a customer-managed key, as TDE performs real-time I/O encryption and decryption of the data and log files without requiring application changes.
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.
✗
Configure dynamic data masking (DDM).
Why it's wrong here
DDM masks data but does not encrypt it.
✗
Implement row-level security (RLS) to restrict access.
Why it's wrong here
RLS controls access, not encryption.
✓
Enable Transparent Data Encryption (TDE) with a customer-managed key from Azure Key Vault.
Read the scenario before looking for a memorised answer.
✗
Enable Always Encrypted for the sensitive columns.
Why it's wrong here
Always Encrypted protects specific columns, not the entire database.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Always Encrypted (which encrypts specific columns at the client side) with TDE (which encrypts the entire database at rest), and they may choose Always Encrypted because it also uses Azure Key Vault, but it does not meet the 'encryption at rest for the entire database' requirement.
Detailed technical explanation
How to think about this question
TDE with customer-managed keys uses the 'Azure SQL Database TDE with BYOK (Bring Your Own Key)' feature, where the database encryption key (DEK) is protected by an asymmetric key stored in Azure Key Vault. The DEK is stored in the database boot record and is decrypted only when the database is started, using the key vault key via the Azure Key Vault service. A common real-world scenario is meeting compliance requirements like PCI DSS or GDPR, where the customer must have sole control over the encryption keys and their rotation schedule.
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 company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this DP-300 question in full detail.
Implement a secure environment — This question tests Implement a secure environment — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Enable Transparent Data Encryption (TDE) with a customer-managed key from Azure Key Vault. — Transparent Data Encryption (TDE) with a customer-managed key stored in Azure Key Vault encrypts the database at rest, using a key that you control and rotate independently. This meets the requirement for encryption at rest with a customer-managed key, as TDE performs real-time I/O encryption and decryption of the data and log files without requiring application changes.
What should I do if I get this DP-300 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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These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. You are deploying an Azure SQL Database that will store sensitive customer data. Compliance requirements dictate that the data must be encrypted at rest using a customer-managed key that is rotated every 90 days. You configure TDE with Azure Key Vault. What additional step is critical to ensure data remains accessible after key rotation?
medium
A.Store the key in a different region for disaster recovery.
✓ B.Ensure the previous key version remains enabled in Azure Key Vault.
C.Use a premium tier of Azure Key Vault.
D.Re-encrypt the database with the new key immediately after rotation.
Why B: When using TDE with Azure Key Vault and customer-managed keys, the database is encrypted using a Data Encryption Key (DEK) that is protected by the key in Key Vault. Key rotation creates a new key version, but the DEK remains encrypted with the previous key version. To decrypt the DEK and access the data after rotation, the previous key version must remain enabled in Key Vault. If it is disabled or deleted, the database becomes inaccessible.
Variation 2. Refer to the exhibit. You are deploying an Azure SQL Database with Transparent Data Encryption (TDE) enabled via ARM template. The database will contain highly sensitive data, and your security policy requires that the encryption key be managed by your organization using Azure Key Vault. What additional configuration is needed?
hard
✓ A.Set the 'keyVaultUri', 'keyName', and 'keyVersion' properties to reference the key in Key Vault
B.No additional configuration is needed; the template already enables TDE with customer-managed keys
C.Deploy a separate key rotation policy in the ARM template
D.Enable 'autoRotationEnabled' property
Why A: Option A is correct because when deploying Azure SQL Database with TDE and customer-managed keys (CMK) via ARM template, you must explicitly specify the 'keyVaultUri', 'keyName', and 'keyVersion' properties under the 'encryptionProtector' resource to link the database to the specific key in Azure Key Vault. Without these properties, the template would only enable TDE with a service-managed key, not the required customer-managed key.
Last reviewed: Jun 24, 2026
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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.
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