MS-102 Manage compliance by using Microsoft Purview Practice Question
Your organization needs to prevent users from sharing documents containing personally identifiable information (PII) with external users. You have Microsoft Purview Data Loss Prevention (DLP) deployed. What should you configure?
⚠ Common exam trap
MS-102 often tests the distinction between DLP and sensitivity labels, where candidates might think a sensitivity label alone can block external sharing, but DLP is required for content-based enforcement.
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 DLP policy that detects PII and restricts sharing to external users.
Microsoft Purview DLP is specifically designed to detect sensitive information types (like PII) in documents and apply protective actions, such as blocking external sharing. A DLP policy can be scoped to locations like SharePoint, OneDrive, Exchange, and Teams, and can enforce rules that prevent users from sharing content containing PII with external users. This directly addresses the requirement by combining detection and enforcement.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Apply a sensitivity label that blocks external sharing.
Why it's wrong here
Sensitivity labels apply encryption and marking but do not evaluate document content for PII, so they cannot block sharing based on data type. They are tempting because labels govern external sharing, and would be correct when the requirement is classification-based protection rather than content-matched DLP enforcement.
- ✓
Create a DLP policy that detects PII and restricts sharing to external users.
Why this is correct
A DLP policy scoped to the PII sensitive information type inspects documents and enforces restrictions when external sharing is attempted. Microsoft Purview evaluates the content against that classifier and blocks or warns on the sharing action, directly satisfying the requirement to stop PII leaving to external users.
- ✗
Configure a conditional access policy in Microsoft Entra ID to block external sharing.
Why it's wrong here
Conditional Access evaluates user, device and location signals at sign-in; it cannot inspect document contents for PII before a share occurs. It is tempting because it controls access to cloud apps, and would be correct when blocking access from unmanaged devices or risky locations rather than stopping content-based sharing.
- ✗
Enable auditing for all document sharing activities.
Why it's wrong here
Auditing records sharing activity after it happens; it cannot block a document containing PII from leaving the tenant. It is tempting because auditing underpins investigation and reporting, and would be the right choice when the requirement is to log and review sharing events rather than prevent them.
Go deeper
Related to this question
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Exchange Journaling and Mail Export
Key term
External sharing
External sharing is the process of granting access to an organization's internal resources, such as documents or sites, to users who are not part of the organization's own identity system.
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.
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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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