- A
Sensitivity labels and auto-labeling policies
Correct. Sensitivity labels define the protection (encryption), and auto-labeling policies automatically apply them when sensitive info types are detected.
- B
Data loss prevention (DLP) policies and retention labels
Incorrect. DLP policies block or monitor content but do not apply sensitivity labels. Retention labels manage retention, not encryption.
- C
Sensitivity labels and retention policies
Why wrong: Incorrect. Retention policies manage data retention, not automatic labeling.
- D
Auto-labeling policies and communication compliance policies
Why wrong: Incorrect. Communication compliance policies are for monitoring communications, not automatically applying sensitivity labels.
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. A key principle to apply: sensitivity labels define protection settings like encryption and access control.. 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 sensitivity label that encrypts documents in SharePoint Online when they contain credit card numbers. The solution must not require manual user action. 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 labels and auto-labeling policies
Option A is correct because sensitivity labels define the encryption and protection settings for content, while auto-labeling policies automatically apply those labels to documents in SharePoint Online when they match sensitive information types like credit card numbers, without requiring manual user action. Together, they enable automated, policy-based classification and protection based on content inspection.
Key principle: Sensitivity labels define protection settings like encryption and access control.
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 labels and auto-labeling policies
Why this is correct
Correct. Sensitivity labels define the protection (encryption), and auto-labeling policies automatically apply them when sensitive info types are detected.
Related concept
Sensitivity labels define protection settings like encryption and access control.
- ✓
Data loss prevention (DLP) policies and retention labels
Why this is correct
Incorrect. DLP policies block or monitor content but do not apply sensitivity labels. Retention labels manage retention, not encryption.
Related concept
Sensitivity labels define protection settings like encryption and access control.
- ✗
Sensitivity labels and retention policies
Why it's wrong here
Incorrect. Retention policies manage data retention, not automatic labeling.
- ✗
Auto-labeling policies and communication compliance policies
Why it's wrong here
Incorrect. Communication compliance policies are for monitoring communications, not automatically applying sensitivity labels.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse DLP policies with auto-labeling, assuming DLP can both detect and protect, but DLP does not apply sensitivity labels or encryption—it only blocks or alerts on policy violations.
Detailed technical explanation
How to think about this question
Auto-labeling policies use the Microsoft 365 built-in sensitive information type for credit card numbers (e.g., EU Debit Card Number) and can be configured for SharePoint Online, OneDrive, and Exchange. The policy triggers a scan of existing and new documents, applying the specified sensitivity label that includes encryption via Azure Information Protection (AIP) with user-defined permissions or predefined templates. A key subtlety is that auto-labeling for SharePoint Online requires the site to be indexed and may take up to 24 hours for initial application.
KKey Concepts to Remember
- Sensitivity labels define protection settings like encryption and access control.
- Auto-labeling policies automatically apply sensitivity labels based on content.
- Auto-labeling policies use sensitive information types (SITs) for detection.
- This combination ensures automatic encryption without user intervention.
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
Sensitivity labels define protection settings like encryption and access control.
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. Sensitivity labels define protection settings like encryption and access control. 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.
Review sensitivity labels define protection settings like encryption and access control., then practise related MS-102 questions on the same topic to reinforce the concept.
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Manage compliance by using Microsoft Purview — study guide chapter
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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 — Sensitivity labels define protection settings like encryption and access control..
What is the correct answer to this question?
The correct answer is: Sensitivity labels and auto-labeling policies — Option A is correct because sensitivity labels define the encryption and protection settings for content, while auto-labeling policies automatically apply those labels to documents in SharePoint Online when they match sensitive information types like credit card numbers, without requiring manual user action. Together, they enable automated, policy-based classification and protection based on content inspection.
What should I do if I get this MS-102 question wrong?
Review sensitivity labels define protection settings like encryption and access control., then practise related MS-102 questions on the same topic to reinforce the concept.
What is the key concept behind this question?
Sensitivity labels define protection settings like encryption and access control.
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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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