DP-700 Implement and Manage an Analytics Solution Practice Question
An organization wants to use Sensitivity Labels from Microsoft Purview to protect data in Microsoft Fabric. When a sensitivity label is applied to a Power BI report in a Fabric workspace, what is the default behavior regarding the protection of data exported from that report to an Excel file?
⚠ Common exam trap
Candidates frequently believe that sensitivity labels are stripped when exporting to Excel or that they only apply to the Power BI service, forgetting that MIP labels persist across exported Office files.
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 Excel file will inherit the sensitivity label and any associated encryption settings of the report.
Fabric integrates with Microsoft Purview Information Protection (MIP). This integration ensures that security travels with the data. Understanding how sensitivity labels persist across different formats and tools is vital for maintaining data security and compliance when data leaves the managed Fabric environment into local files.
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 Excel file will have no label, as labels only apply to items within the Fabric service.
Why it's wrong here
This is incorrect because Microsoft Purview sensitivity labels are designed to provide persistent protection. One of the primary benefits of the integration between Fabric and Purview is that the security metadata and encryption (if configured) follow the data as it is exported to other formats.
- ✓
The Excel file will inherit the sensitivity label and any associated encryption settings of the report.
Why this is correct
When a report with a sensitivity label is exported to Excel, Fabric ensures that the label is applied to the resulting file. If the label includes encryption, the Excel file will be encrypted, ensuring that only authorized users can view the data even outside of Fabric.
- ✗
The export will fail unless the user manually selects a label for the Excel file during the download.
Why it's wrong here
The process is automated; users are not required to manually select a label during the export process. Fabric automatically applies the label of the source report to the exported file to ensure consistent data protection without relying on manual user intervention at the time of export.
- ✗
The label will be applied to the Excel file, but any encryption settings will be stripped for compatibility.
Why it's wrong here
Encryption settings are not stripped; they are a fundamental part of the sensitivity label's protection. If the label is configured to encrypt content, the Excel file will remain encrypted, maintaining the security posture defined by the organization's data protection policies regardless of the tool used.
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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-700 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-700 exam.