- A
sensitivity label with auto-labeling rule and a Data Loss Prevention policy
DLP policies can detect and protect data but do not apply sensitivity labels automatically.
- B
retention label and a Communication Compliance policy
Why wrong: Retention labels manage data retention, and Communication Compliance monitors communications; neither applies sensitivity labels.
- C
sensitivity label with auto-labeling rule and an auto-labeling policy
Correct. The auto-labeling policy uses a sensitive info type to detect SSNs and applies the sensitivity label via its auto-labeling rule.
- D
unified labeling client and a custom sensitive info type
Why wrong: The unified labeling client is used for manual labeling or client-side auto-labeling, but for Exchange Online in transit, a server-side auto-labeling policy is required.
Quick Answer
The correct answer is a sensitivity label with an auto-labeling rule and an auto-labeling policy. This combination is required because the auto-labeling rule defines the 'Highly Confidential' label and the condition to detect social security numbers, while the auto-labeling policy scopes that rule to Exchange Online and enforces automatic application without any user interaction. On the Microsoft 365 Administrator MS-102 exam, this tests your understanding of how Purview Information Protection components work together for automated compliance scenarios, often appearing as a two-part selection question. A common trap is choosing just a label or just a policy, but remember: the label provides the "what" and the policy provides the "how" and "where." To auto-apply sensitivity labels to emails containing social security numbers, you must configure both the label's auto-labeling rule for sensitive info types and the policy to trigger it in Exchange Online. Memory tip: think "Label + Policy = Automatic Compliance," where the label defines the condition and the policy drives the action.
MS-102 Manage compliance by using Microsoft Purview Practice Question
This MS-102 practice question tests your understanding of manage compliance by using microsoft purview. 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.
A compliance officer needs to automatically apply a 'Highly Confidential' sensitivity label to any email in Exchange Online that contains social security numbers. The labeling must happen automatically without user interaction. Which two Microsoft Purview components must be configured? (Select the option that correctly identifies both required components.)
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
sensitivity label with auto-labeling rule and a Data Loss Prevention policy
Option C is correct because automatically applying a sensitivity label to emails containing social security numbers requires both a sensitivity label configured with an auto-labeling rule (to define the label and conditions) and an auto-labeling policy (to scope the rule to Exchange Online and enable automatic enforcement without user interaction). The auto-labeling policy triggers the label based on sensitive info types, meeting the compliance officer's requirement for fully automated labeling.
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.
- ✓
sensitivity label with auto-labeling rule and a Data Loss Prevention policy
Why this is correct
DLP policies can detect and protect data but do not apply sensitivity labels automatically.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
retention label and a Communication Compliance policy
Why it's wrong here
Retention labels manage data retention, and Communication Compliance monitors communications; neither applies sensitivity labels.
- ✓
sensitivity label with auto-labeling rule and an auto-labeling policy
Why this is correct
Correct. The auto-labeling policy uses a sensitive info type to detect SSNs and applies the sensitivity label via its auto-labeling rule.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
unified labeling client and a custom sensitive info type
Why it's wrong here
The unified labeling client is used for manual labeling or client-side auto-labeling, but for Exchange Online in transit, a server-side auto-labeling policy is required.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse a DLP policy (which can detect and block but not label) with an auto-labeling policy (which is specifically designed for automatic label application), or they mistakenly think a client-side component like the unified labeling client can achieve server-side automatic labeling in Exchange Online.
Detailed technical explanation
How to think about this question
Under the hood, auto-labeling policies in Microsoft Purview use the Exchange Online mail flow to scan email content at rest (in transit for Exchange) against sensitive info types defined in the Microsoft 365 compliance center. The policy evaluates conditions like 'contains social security number' and, if matched, stamps the sensitivity label on the email header and metadata, which then enforces encryption or other protection actions defined in the label. A real-world scenario is a healthcare organization that must automatically label all outbound emails with patient SSNs as 'Highly Confidential' to comply with HIPAA, ensuring no user can bypass the classification.
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 cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this MS-102 question test?
Manage compliance by using Microsoft Purview — This question tests Manage compliance by using Microsoft Purview — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: sensitivity label with auto-labeling rule and a Data Loss Prevention policy — Option C is correct because automatically applying a sensitivity label to emails containing social security numbers requires both a sensitivity label configured with an auto-labeling rule (to define the label and conditions) and an auto-labeling policy (to scope the rule to Exchange Online and enable automatic enforcement without user interaction). The auto-labeling policy triggers the label based on sensitive info types, meeting the compliance officer's requirement for fully automated labeling.
What should I do if I get this MS-102 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.
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Last reviewed: Jun 11, 2026
This MS-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 MS-102 exam.
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