A compliance officer needs to retain all documents in a SharePoint Online site associated with the Finance department for 7 years, and after that automatically delete them. During the retention period, users must not be able to edit or delete the documents. Which solution should they use?
A regulatory records label prevents editing and deletion, and auto-apply policies can apply the label to all documents in the site automatically.
Why this answer
Option B is correct because a retention label with 'Retain as regulatory records' locks the document against editing or deletion during the retention period, and auto-applying the label based on site location ensures all documents in the Finance site inherit the 7-year retention and automatic deletion. This meets the compliance officer's requirement for immutable retention and automatic disposal without manual user intervention.
Exam trap
The trap here is confusing 'Retain as records' (which only prevents deletion after the retention period) with 'Retain as regulatory records' (which prevents editing and deletion during the entire retention period), leading candidates to incorrectly choose Option A.
How to eliminate wrong answers
Option A is wrong because a retention policy with 'Retain as records' action does not prevent users from editing or deleting documents during the retention period; it only prevents deletion after the retention period ends. Option C is wrong because a sensitivity label with 'Retain as records' is not a valid construct; sensitivity labels manage sensitivity and protection, not retention, and manual application does not guarantee all documents are covered. Option D is wrong because a litigation hold preserves documents indefinitely (until the hold is released) and does not enforce a specific 7-year retention period or automatic deletion; it also does not prevent editing, only deletion.