The correct answer is a retention label configured to mark items as regulatory records with a 3-year retention period and a disposition review. This works because regulatory records enforce immutability—preventing any modification or deletion—for the entire retention duration, exactly matching the compliance officer’s need for documents that cannot be altered for three years. Once that period expires, the disposition review initiates a manual workflow where a reviewer must approve or deny deletion, satisfying the requirement for a post-retention decision. On the MS-102 exam, this scenario tests your understanding of how Microsoft Purview’s retention labels differ from retention policies, especially the regulatory records option that locks content permanently. A common trap is confusing regulatory records with standard records, which allow deletion after the retention period without a review. Remember the mnemonic: “Regulatory locks, review unlocks”—the label locks data for 3 years, then the disposition review unlocks the deletion decision.
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 mark documents in a SharePoint Online library as regulatory records. These records must be immutable (cannot be modified or deleted) for 3 years. After 3 years, a disposition review must be initiated to decide if the records can be deleted. Which Microsoft Purview solution should the officer configure?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Retention label configured to mark items as records with a retention period of 3 years and disposition review
Option A is correct because a retention label configured to mark items as regulatory records enforces immutability (no modification or deletion) for the specified retention period of 3 years. After the retention period expires, the disposition review triggers a workflow where a reviewer must approve or reject deletion, meeting the compliance officer's requirement exactly.
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.
✓
Retention label configured to mark items as records with a retention period of 3 years and disposition review
Why this is correct
Retention labels can classify items as records, making them immutable, and include a retention period with disposition review for deletion.
Related concept
Read the scenario before looking for a memorised answer.
✗
Data Lifecycle Management retention policy with disposition review
Why it's wrong here
Retention policies can include disposition review, but they cannot mark items as records to enforce immutability.
✗
Sensitivity label with encryption
Why it's wrong here
Sensitivity labels control access and protection, not immutability or retention.
✗
eDiscovery case with hold
Why it's wrong here
eDiscovery holds prevent deletion for legal purposes, but are not scheduled for automatic deletion after a specific period.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse retention policies (which apply broadly to containers) with retention labels (which apply granularly to items and support regulatory records and disposition reviews), leading them to choose Option B incorrectly.
Detailed technical explanation
How to think about this question
Regulatory records in Microsoft Purview use a special lock that prevents any user, including administrators, from modifying or deleting the record until the retention period expires. The disposition review is a separate workflow that can be configured to require approval before permanent deletion, ensuring compliance with regulations like SEC 17a-4. Under the hood, the retention label applies a preservation lock that is enforced at the storage layer, making the record truly immutable even against privileged access.
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: Retention label configured to mark items as records with a retention period of 3 years and disposition review — Option A is correct because a retention label configured to mark items as regulatory records enforces immutability (no modification or deletion) for the specified retention period of 3 years. After the retention period expires, the disposition review triggers a workflow where a reviewer must approve or reject deletion, meeting the compliance officer's requirement exactly.
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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These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. 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?
medium
A.Create a retention policy scoped to the site with 'Retain as records' action
✓ B.Create a retention label with 'Retain as regulatory records' and publish it to the site, then use auto-apply based on site location
C.Create a sensitivity label with 'Retain as records' and apply it manually
D.Create a litigation hold for the site
Why B: 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.
Last reviewed: Jun 11, 2026
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