DP-700 Implement and Manage an Analytics Solution Practice Question
Your organization requires that all data stored in the Fabric Lakehouse must be encrypted at rest using a customer-managed key (CMK). What is the mandatory step to achieve this?
⚠ Common exam trap
Test-takers often confuse capacity-level security configurations like Customer-Managed Keys with standard workspace sharing permissions or default tenant storage settings.
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
✓
Configure the Fabric capacity to use an Azure Key Vault.
Implementing CMK in Fabric involves integrating with Azure Key Vault to manage the encryption keys. This provides organizations with full control over their data security posture, meeting strict compliance requirements. Understanding the configuration process for CMK is vital for data engineers responsible for enterprise-grade security and governance, as it impacts how the underlying storage and compute layers access protected data assets within the Fabric workspace.
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 encryption in the Lakehouse property settings.
Why it's wrong here
While Fabric supports encryption, simply clicking a box in the Lakehouse settings is insufficient. CMK requires a configured Azure Key Vault and the correct service principal permissions to access the key. Without the external key vault integration, data remains encrypted with platform-managed keys only.
- ✓
Configure the Fabric capacity to use an Azure Key Vault.
Why this is correct
To enforce customer-managed keys, the Fabric capacity must be linked to an Azure Key Vault. This integration ensures that all data stored in the associated workspace is encrypted with the user-provided key, providing the necessary security controls for compliance and data protection mandates in highly regulated environments.
- ✗
Rotate the encryption keys in the Power BI Admin portal.
Why it's wrong here
The Power BI Admin portal manages report-level settings, not storage-level encryption keys for Fabric data artifacts. Key rotation is a security operation that must occur within the Azure Key Vault itself to ensure the new key is propagated correctly across the associated Fabric storage resources.
- ✗
Apply a Data Policy tag to the Lakehouse artifact.
Why it's wrong here
Data tags in Fabric are used for governance, classification, and metadata management, not for configuring physical encryption at rest. Security policies and encryption methods must be handled through infrastructure-level configurations or security policy settings, not through descriptive classification tags applied to individual artifacts.
About these practice questions
This DP-700 question is part of Courseiva's 152-question bank — original exam-style content with full explanations and wrong-answer analysis, never real exam questions or exam dumps. Learn why practice questions differ from exam dumps →
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.