MS-900 Practice Question: Describe security, compliance, privacy, and trust in Microsoft 365
This MS-900 practice question tests your understanding of describe security, compliance, privacy, and trust in microsoft 365. 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 needs to automatically protect sensitive data by applying a 'Confidential' label that encrypts documents and restricts access to a specific user group. The label must be applied when a document containing a credit card number is saved in SharePoint. Which Microsoft Purview feature should be configured?
Why wrong: Retention labels manage data retention and deletion, not automatic encryption or access restrictions based on sensitive content.
B
Sensitivity labels with auto-labeling
Sensitivity labels can be configured with auto-labeling policies to automatically apply encryption and access controls when sensitive data like credit card numbers is detected in SharePoint documents.
C
Data Loss Prevention (DLP) policies
Why wrong: DLP policies prevent accidental sharing of sensitive data but do not apply labels or encryption to documents automatically.
D
Data classification service
Why wrong: The data classification service identifies sensitive data but does not automatically apply protection labels or encryption.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Sensitivity labels with auto-labeling
Sensitivity labels with auto-labeling are the correct choice because they allow you to automatically apply a 'Confidential' label that encrypts documents and restricts access based on sensitive content (e.g., credit card numbers) when documents are saved in SharePoint. This feature uses conditions like sensitive information types to trigger label application, ensuring data protection at rest and in use.
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 labels
Why it's wrong here
Retention labels manage data retention and deletion, not automatic encryption or access restrictions based on sensitive content.
✓
Sensitivity labels with auto-labeling
Why this is correct
Sensitivity labels can be configured with auto-labeling policies to automatically apply encryption and access controls when sensitive data like credit card numbers is detected in SharePoint documents.
Related concept
Read the scenario before looking for a memorised answer.
✗
Data Loss Prevention (DLP) policies
Why it's wrong here
DLP policies prevent accidental sharing of sensitive data but do not apply labels or encryption to documents automatically.
✗
Data classification service
Why it's wrong here
The data classification service identifies sensitive data but does not automatically apply protection labels or encryption.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse DLP policies with auto-labeling, but DLP policies only block or alert on data sharing, not apply labels or encryption, which is the core requirement for protecting data at rest.
Detailed technical explanation
How to think about this question
Under the hood, sensitivity labels with auto-labeling in Microsoft Purview use the Microsoft 365 unified labeling client and the Azure Information Protection (AIP) scanner to inspect content for sensitive information types (e.g., credit card numbers matching regex patterns). When a document is saved in SharePoint, the auto-labeling policy triggers a background scan, and if conditions are met, the label is applied, which can enforce encryption via Azure Rights Management (RMS) and restrict access to a specified user group through the label's permissions settings.
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-900 question in full detail.
Describe security, compliance, privacy, and trust in Microsoft 365 — This question tests Describe security, compliance, privacy, and trust in Microsoft 365 — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Sensitivity labels with auto-labeling — Sensitivity labels with auto-labeling are the correct choice because they allow you to automatically apply a 'Confidential' label that encrypts documents and restricts access based on sensitive content (e.g., credit card numbers) when documents are saved in SharePoint. This feature uses conditions like sensitive information types to trigger label application, ensuring data protection at rest and in use.
What should I do if I get this MS-900 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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