The correct configuration is a Conditional Access policy targeting sign-in risk of medium and above, requiring multi-factor authentication, and excluding trusted named locations. This approach directly satisfies the Secure Score recommendation to enable a sign-in risk policy while ensuring that users connecting from trusted locations are not challenged, as the exclusion clause bypasses the MFA requirement for those IP ranges. On the MS-102 exam, this scenario tests your understanding of how Conditional Access policies layer risk detection with location-based exclusions, a common trap being the mistaken inclusion of trusted locations as a grant control rather than an exclusion. Remember the memory tip: “Exclude the trusted, challenge the rest” to recall that trusted named locations should be excluded from the sign-in risk policy to avoid unnecessary prompts.
MS-102 Deploy and manage a Microsoft 365 tenant Practice Question
This MS-102 practice question tests your understanding of deploy and manage a microsoft 365 tenant. 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.
Your organization uses Microsoft 365 E5 licenses. You need to implement a secure score improvement plan. After reviewing the Secure Score, you notice a recommendation to 'Enable sign-in risk policy' in Microsoft Entra ID. However, you want to ensure that users who sign in from trusted locations are not challenged. What should you configure?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Create a conditional access policy that targets sign-in risk: medium and above, require MFA, and exclude trusted named locations.
Option D is correct because it creates a Conditional Access policy that targets sign-in risk at medium and above, requiring MFA, while excluding trusted named locations. This ensures users from trusted IPs are not challenged, directly addressing the requirement to avoid unnecessary prompts for trusted sign-ins while still enforcing risk-based policies.
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.
✗
Configure named locations in Microsoft Entra ID for trusted IPs.
Why it's wrong here
Named locations are used in policies but not sufficient alone.
✗
Enable the 'Sign-in risk' policy in Identity Protection and set 'Exclude trusted locations'.
Why it's wrong here
Identity Protection does not have a trusted location exclusion built in.
✗
Enable the 'Require MFA for all users' conditional access policy.
Why it's wrong here
This does not exclude trusted locations.
✓
Create a conditional access policy that targets sign-in risk: medium and above, require MFA, and exclude trusted named locations.
Why this is correct
This ensures users from trusted locations are not challenged.
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 confuse Identity Protection's risk policies with Conditional Access policies, assuming exclusions are set directly in Identity Protection rather than through Conditional Access, leading them to select Option B.
Detailed technical explanation
How to think about this question
Under the hood, Microsoft Entra ID Conditional Access evaluates sign-in risk levels (low, medium, high) based on real-time risk detections from Identity Protection, such as anonymous IP addresses or atypical travel. Excluding trusted named locations (defined by public IP ranges) allows the policy to skip risk evaluation for those IPs, reducing friction for corporate network sign-ins. In a real-world scenario, this prevents MFA prompts for users connecting from a branch office with a known IP range, while still protecting against risky sign-ins from unknown locations.
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 company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this MS-102 question in full detail.
Deploy and manage a Microsoft 365 tenant — This question tests Deploy and manage a Microsoft 365 tenant — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Create a conditional access policy that targets sign-in risk: medium and above, require MFA, and exclude trusted named locations. — Option D is correct because it creates a Conditional Access policy that targets sign-in risk at medium and above, requiring MFA, while excluding trusted named locations. This ensures users from trusted IPs are not challenged, directly addressing the requirement to avoid unnecessary prompts for trusted sign-ins while still enforcing risk-based policies.
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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Question Discussion
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