- A
The sign-in risk policy is overriding the user risk policy.
Why wrong: They are separate policies; one doesn't override the other.
- B
The users have MFA enabled, so they are exempt from risk policies.
Why wrong: MFA does not exempt users from risk policies.
- C
The user risk policy is set to 'Report-only' mode instead of 'On'.
Report-only mode only logs, does not block.
- D
The policy is configured to apply only to a test group, and the affected users are not members.
Why wrong: The question implies all users should be covered.
Quick Answer
The answer is that the user risk policy is set to 'Report-only' mode instead of 'On'. This is the most likely reason because Report-only mode evaluates user risk and logs the results, but it never enforces any actions—such as blocking sign-ins—regardless of the risk level. For automatic blocking to occur when a user’s risk is high, the policy must be explicitly enabled and set to the 'On' enforcement mode. On the MD-102 exam, this scenario tests your understanding of Microsoft Entra ID Protection policy configuration, specifically the critical distinction between evaluation and enforcement. A common trap is assuming that a correctly configured risk threshold alone will trigger blocking; you must always verify the policy mode. Remember the memory tip: “Report-only reports, On only blocks”—if you see a policy not blocking, check that it’s not just reporting.
MD-102 Manage identity and compliance Practice Question
This MD-102 practice question tests your understanding of manage identity and compliance. 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.
An administrator is configuring Microsoft Entra ID Protection. They want to create a policy that automatically blocks sign-ins when the risk level is high. However, they notice that the policy is not triggering for some users who have high risk. What is the most likely reason?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"most likely"Why it matters: Probability qualifier — the question wants the most probable cause or outcome, not a guaranteed one. Eliminate low-probability options.
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
The user risk policy is set to 'Report-only' mode instead of 'On'.
Option C is correct because when a user risk policy is set to 'Report-only' mode, it evaluates risk and generates reports but does not enforce any actions such as blocking sign-ins. For automatic blocking to occur, the policy must be set to 'On' (enabled). The administrator likely configured the policy correctly in terms of risk level but overlooked the enforcement mode, which is a common misconfiguration in Microsoft Entra ID Protection.
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.
- ✗
The sign-in risk policy is overriding the user risk policy.
Why it's wrong here
They are separate policies; one doesn't override the other.
- ✗
The users have MFA enabled, so they are exempt from risk policies.
Why it's wrong here
MFA does not exempt users from risk policies.
- ✓
The user risk policy is set to 'Report-only' mode instead of 'On'.
Why this is correct
Report-only mode only logs, does not block.
Clue confirmation
The clue word "most likely" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
The policy is configured to apply only to a test group, and the affected users are not members.
Why it's wrong here
The question implies all users should be covered.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume a policy is automatically enforcing once configured with a risk level, overlooking the separate 'mode' setting that controls enforcement versus reporting-only behavior.
Detailed technical explanation
How to think about this question
In Microsoft Entra ID Protection, user risk policies and sign-in risk policies each have three modes: 'Off', 'Report-only', and 'On'. In 'Report-only' mode, the policy evaluates risk and logs events in the audit logs but does not enforce any conditional access actions (e.g., block, require MFA). This mode is useful for testing before full deployment. The policy triggers only when set to 'On', which enables automatic enforcement based on the configured risk level threshold.
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.
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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Manage identity and compliance — study guide chapter
Learn the concepts, then practise the questions
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Targeted practice on this topic area only
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FAQ
Questions learners often ask
What does this MD-102 question test?
Manage identity and compliance — This question tests Manage identity and compliance — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: The user risk policy is set to 'Report-only' mode instead of 'On'. — Option C is correct because when a user risk policy is set to 'Report-only' mode, it evaluates risk and generates reports but does not enforce any actions such as blocking sign-ins. For automatic blocking to occur, the policy must be set to 'On' (enabled). The administrator likely configured the policy correctly in terms of risk level but overlooked the enforcement mode, which is a common misconfiguration in Microsoft Entra ID Protection.
What should I do if I get this MD-102 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Are there clue words in this question I should notice?
Yes — watch for: "most likely". Probability qualifier — the question wants the most probable cause or outcome, not a guaranteed one. Eliminate low-probability options.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
This MD-102 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 MD-102 exam.
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