The answer is to create an auto-labeling policy and define a sensitive information type (SIT) for tax identification numbers. The SIT acts as the detection engine, using patterns like regex or keyword lists to identify tax ID content within documents, while the auto-labeling policy then automatically applies the 'Confidential' sensitivity label when that content is matched, eliminating the need for manual user action. On the MS-102 exam, this scenario tests your understanding of how Microsoft 365 Purview integrates content inspection with automated labeling policies, often appearing as a paired-configuration question where a common trap is selecting a manual label policy or a retention label instead. Remember the core pairing: the SIT finds the data, and the auto-labeling policy applies the label—think of it as "detect then protect." A helpful memory tip is "SIT spots, policy locks," reinforcing that the sensitive info type identifies the pattern, and the auto-labeling policy enforces the classification.
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 administrator wants to automatically apply a 'Confidential' sensitivity label to documents that contain tax identification numbers. Which two configurations are required? (Choose two.)
Sensitive information types define patterns (e.g., regex) to detect specific data like tax IDs.
B
Create a sensitivity label with the desired protection settings
Why wrong: Creating a sensitivity label is a prerequisite but not part of the automatic labeling configuration; the auto-labeling policy references an existing label.
C
Configure a data loss prevention (DLP) rule
Why wrong: DLP rules prevent sharing of sensitive data but do not apply sensitivity labels automatically.
D
Create an auto-labeling policy
An auto-labeling policy defines where to scan and which label to apply based on sensitive information types.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Define a sensitive information type for tax IDs
Option A is correct because a sensitive information type (SIT) defines the pattern to detect tax identification numbers (e.g., using regex or keyword lists) in content. Option D is correct because an auto-labeling policy automatically applies the sensitivity label to documents when the SIT is matched, without requiring user intervention. Together, they enable automatic classification based on content inspection.
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.
✓
Define a sensitive information type for tax IDs
Why this is correct
Sensitive information types define patterns (e.g., regex) to detect specific data like tax IDs.
Related concept
Read the scenario before looking for a memorised answer.
✗
Create a sensitivity label with the desired protection settings
Why it's wrong here
Creating a sensitivity label is a prerequisite but not part of the automatic labeling configuration; the auto-labeling policy references an existing label.
✗
Configure a data loss prevention (DLP) rule
Why it's wrong here
DLP rules prevent sharing of sensitive data but do not apply sensitivity labels automatically.
✓
Create an auto-labeling policy
Why this is correct
An auto-labeling policy defines where to scan and which label to apply based on sensitive information types.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse DLP rules with auto-labeling policies, but DLP rules enforce actions like blocking or alerting on sensitive data, while auto-labeling policies specifically apply sensitivity labels based on content matching.
Detailed technical explanation
How to think about this question
Auto-labeling policies in Microsoft Purview use the Microsoft 365 built-in sensitive information types (e.g., U.S. Tax Identification Number) to scan content at rest in SharePoint, OneDrive, and Exchange. The policy can be configured for simulation mode first to test detection accuracy before enforcing label application, which is critical to avoid over-classification in production environments.
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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this MS-102 question in full detail.
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: Define a sensitive information type for tax IDs — Option A is correct because a sensitive information type (SIT) defines the pattern to detect tax identification numbers (e.g., using regex or keyword lists) in content. Option D is correct because an auto-labeling policy automatically applies the sensitivity label to documents when the SIT is matched, without requiring user intervention. Together, they enable automatic classification based on content inspection.
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
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
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.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.