- A
Create a custom sensitive information type and configure an auto-apply retention label policy that applies a regulatory record label
Correct. The custom SIT detects the pattern, and the auto-labeling policy applies the label that marks the item as a regulatory record with the 10-year retention.
- B
Create a default retention label for emails and assign it to all mailboxes via a retention policy
Incorrect. A default label applies to all items, not just those containing the specific pattern, and does not automatically mark as regulatory record.
- C
Create a retention label with record marking and publish it to all users, then train users to apply it manually
Why wrong: Incorrect. The requirement is for automatic application, not manual.
- D
Create a Data Loss Prevention (DLP) policy that detects the custom pattern and blocks the email until it is labeled
Why wrong: Incorrect. DLP policies do not apply retention labels; they enforce actions like blocking or notification.
Quick Answer
The answer is to create a custom sensitive information type and an auto-apply retention label policy configured with a regulatory record label. This works because the custom sensitive info type defines the specific data pattern—such as a contract ID or employee number—that triggers the automatic action, while the auto-apply retention label policy scans outbound emails for that pattern and applies a regulatory record label that enforces a 10-year retention period and prohibits user deletion. On the MS-102 exam, this scenario tests your understanding of how Microsoft Purview’s auto-labeling policies integrate with custom sensitive info types to meet compliance requirements without manual user intervention; a common trap is confusing a default retention label (which requires manual application) with an auto-apply policy. Remember the key pairing: the custom sensitive info type is the trigger, and the auto-apply policy is the enforcer. Memory tip: “Pattern plus policy equals automatic compliance.”
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. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 implement a policy that automatically marks emails containing a specific custom sensitive information type as a regulatory record upon sending. The regulatory record must be retained for 10 years and cannot be deleted by users. Which two components must be configured to achieve this?
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 a custom sensitive information type and configure an auto-apply retention label policy that applies a regulatory record label
To automatically mark emails containing a specific custom sensitive information type as a regulatory record upon sending, you need both a custom sensitive information type (to define the data pattern) and an auto-apply retention label policy (to automatically apply a regulatory record label based on that pattern). The regulatory record label enforces the 10-year retention and prohibits user deletion, meeting the compliance officer's requirements without manual user action.
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 a custom sensitive information type and configure an auto-apply retention label policy that applies a regulatory record label
Why this is correct
Correct. The custom SIT detects the pattern, and the auto-labeling policy applies the label that marks the item as a regulatory record with the 10-year retention.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Create a default retention label for emails and assign it to all mailboxes via a retention policy
Why this is correct
Incorrect. A default label applies to all items, not just those containing the specific pattern, and does not automatically mark as regulatory record.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Create a retention label with record marking and publish it to all users, then train users to apply it manually
Why it's wrong here
Incorrect. The requirement is for automatic application, not manual.
- ✗
Create a Data Loss Prevention (DLP) policy that detects the custom pattern and blocks the email until it is labeled
Why it's wrong here
Incorrect. DLP policies do not apply retention labels; they enforce actions like blocking or notification.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse auto-apply retention label policies with DLP policies, thinking DLP can both detect and label, but DLP only detects and blocks—it cannot apply retention labels or enforce retention periods.
Detailed technical explanation
How to think about this question
Auto-apply retention label policies in Microsoft Purview use content-based classification, such as sensitive information types or trainable classifiers, to automatically assign labels at the time of sending. Regulatory records are a subtype of retention labels that lock the item so that no user, including administrators, can delete it during the retention period; this is enforced by the underlying Exchange Online and SharePoint Online storage systems. The custom sensitive information type must be defined using the Exact Data Match (EDM) or pattern-based schema in the Microsoft Purview compliance portal to trigger the label application.
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
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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 a custom sensitive information type and configure an auto-apply retention label policy that applies a regulatory record label — To automatically mark emails containing a specific custom sensitive information type as a regulatory record upon sending, you need both a custom sensitive information type (to define the data pattern) and an auto-apply retention label policy (to automatically apply a regulatory record label based on that pattern). The regulatory record label enforces the 10-year retention and prohibits user deletion, meeting the compliance officer's requirements without manual user action.
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
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