MS-102 Auto-labeling policy Practice Question
Which THREE components are required to implement auto-labeling for sensitivity labels in Microsoft 365?
⚠ Common exam trap
MS-102 often tests the components of auto-labeling and confuses it with DLP; candidates might incorrectly include a DLP policy as a requirement, but auto-labeling policies are separate and do not require DLP.
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
✓
A sensitivity label configured for auto-labeling.
Auto-labeling in Microsoft 365 requires three core components. Option A is correct because a sensitivity label must be configured for auto-labeling (i.e., its auto-labeling setting enabled) so it can be applied automatically to matching content. Option C is correct because the auto-labeling policy must reference a sensitive info type (such as a built-in SIT or a custom SIT) or a trainable classifier to detect the content to label. Option D is correct because an auto-labeling policy is the container that binds the label to the detection rules and specifies the workloads/locations (Exchange, SharePoint, OneDrive) where labeling runs. Option B is not required: a DLP policy is a separate data loss prevention control and is not a prerequisite for auto-labeling, even if it uses the same sensitive info type. Option E is not required: information barrier policies restrict communication between groups and are unrelated to sensitivity label auto-labeling.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
A sensitivity label configured for auto-labeling.
Why this is correct
Auto-labelling requires a sensitivity label whose settings define what the policy applies; without a label configured for auto-labelling there is nothing for the policy to assign. It satisfies the stem's requirement as the mandatory label component of the three-part configuration.
- ✗
A DLP policy for the same sensitive info type.
Why it's wrong here
A DLP policy enforces protective actions on content matching sensitive information types; it does not apply sensitivity labels automatically. Auto-labeling needs a published sensitivity label, the sensitive information types or trainable classifiers, and an auto-labeling policy. DLP is tempting because both rely on the same sensitive information types.
- ✓
A sensitive info type or trainable classifier.
Why this is correct
Auto-labelling needs detection logic: a sensitive info type or trainable classifier identifies content matching the conditions. Without it, the policy has no criteria to evaluate, so it satisfies the stem's requirement as the mandatory detection component.
- ✓
An auto-labeling policy that specifies the label and locations.
Why this is correct
The auto-labelling policy is the enforcement mechanism, binding the label to specified locations such as Exchange, SharePoint and OneDrive. It satisfies the stem's requirement as the mandatory policy component that actually deploys auto-labelling across workloads.
- ✗
An information barrier policy.
Why it's wrong here
Information barriers restrict communication between user segments; they neither trigger nor apply sensitivity labels. Auto-labeling requires a published label policy, the sensitive information types or trainable classifiers to detect content, and the auto-labeling policy itself. Information barriers are tempting because they are a compliance control in the same portal.
Go deeper
Related to this question
Learn chapter
Data Loss Prevention Policies
Key term
DLP policy
A DLP policy is a set of rules that an organization uses to prevent sensitive data from being lost, stolen, or accidentally exposed, whether it is in use, in motion, or at rest.
Key term
Microsoft 365
Microsoft 365 is a subscription-based cloud service from Microsoft that combines productivity tools like Office apps with security, device management, and online storage.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Microsoft exam blueprint
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