- A
Create an auto-labeling policy for sensitivity labels
Auto-labeling policies scan content for sensitive data and automatically apply sensitivity labels, meeting the requirement.
- B
Create a retention label policy
Why wrong: Retention labels manage how long content is retained, not classification or labeling based on sensitive data.
- C
Create a Data Loss Prevention (DLP) policy
Why wrong: DLP policies prevent unauthorized sharing of sensitive data, but they do not apply sensitivity labels.
- D
Configure a default sensitivity label
Why wrong: A default label applies to all new documents unless overridden, but does not perform content-based scanning.
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 wants to automatically apply a 'Confidential' sensitivity label to documents in SharePoint Online that contain credit card numbers. The label should be applied when the documents are created or modified. Which Microsoft Purview feature should be configured?
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
Create an auto-labeling policy for sensitivity labels
Auto-labeling policies for sensitivity labels in Microsoft Purview can automatically apply a sensitivity label to documents in SharePoint Online based on sensitive information types, such as credit card numbers. This policy scans documents when they are created or modified and applies the label without user intervention, meeting the compliance officer's requirement.
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.
- ✓
Create an auto-labeling policy for sensitivity labels
Why this is correct
Auto-labeling policies scan content for sensitive data and automatically apply sensitivity labels, meeting the requirement.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Create a retention label policy
Why it's wrong here
Retention labels manage how long content is retained, not classification or labeling based on sensitive data.
- ✗
Create a Data Loss Prevention (DLP) policy
Why it's wrong here
DLP policies prevent unauthorized sharing of sensitive data, but they do not apply sensitivity labels.
- ✗
Configure a default sensitivity label
Why it's wrong here
A default label applies to all new documents unless overridden, but does not perform content-based scanning.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse a DLP policy's ability to detect sensitive data with the ability to automatically apply a sensitivity label, but DLP policies only trigger alerts or block actions, not label documents.
Detailed technical explanation
How to think about this question
Auto-labeling policies use the Microsoft 365 built-in sensitive information types (e.g., Credit Card Number) defined by regular expressions and checksum validation. The policy evaluates documents in SharePoint Online at rest and during upload/modification via the Microsoft 365 Activity Explorer and the Azure Information Protection scanner integration. A real-world scenario involves ensuring that legacy documents in a SharePoint library are also retroactively labeled by running the auto-labeling policy in simulation mode first to validate matches before enforcing the label.
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.
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 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 — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Create an auto-labeling policy for sensitivity labels — Auto-labeling policies for sensitivity labels in Microsoft Purview can automatically apply a sensitivity label to documents in SharePoint Online based on sensitive information types, such as credit card numbers. This policy scans documents when they are created or modified and applies the label without user intervention, meeting the compliance officer's requirement.
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.
About these practice questions
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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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