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 officer needs to automatically classify and protect documents stored in SharePoint Online that contain personal data such as passport numbers. The classification should happen without user intervention and must apply encryption and access restrictions. Which Microsoft Purview solution should be configured?
Why wrong: DLP policies detect and block sharing of sensitive data, but they do not automatically apply labels or encryption to documents.
B
Sensitivity labels with auto-labeling
Auto-labeling policies can scan documents for sensitive data types and automatically apply a sensitivity label that enforces encryption and access restrictions.
C
eDiscovery (Standard)
Why wrong: eDiscovery is used for searching and exporting content, not for automatic classification and protection.
D
Communication Compliance
Why wrong: Communication Compliance monitors employee communications for policy violations, not document classification.
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 (Option B) are the correct solution because they can automatically classify documents based on patterns like passport numbers using trainable classifiers or exact data match (EDM), and then apply encryption and access restrictions via the label's protection settings—all without user intervention. This meets the compliance officer's requirement for automatic classification and protection of personal data in SharePoint Online.
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.
✗
Data Loss Prevention (DLP) policy
Why it's wrong here
DLP policies detect and block sharing of sensitive data, but they do not automatically apply labels or encryption to documents.
✓
Sensitivity labels with auto-labeling
Why this is correct
Auto-labeling policies can scan documents for sensitive data types and automatically apply a sensitivity label that enforces encryption and access restrictions.
Related concept
Read the scenario before looking for a memorised answer.
✗
eDiscovery (Standard)
Why it's wrong here
eDiscovery is used for searching and exporting content, not for automatic classification and protection.
✗
Communication Compliance
Why it's wrong here
Communication Compliance monitors employee communications for policy violations, not document classification.
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 only monitors and blocks sharing actions, while auto-labeling applies persistent protection (encryption and access restrictions) directly to the document content.
Detailed technical explanation
How to think about this question
Auto-labeling in Microsoft Purview Information Protection uses conditions such as sensitive info types (e.g., passport number regex) or trainable classifiers to apply sensitivity labels at rest or in transit. The label can enforce encryption via Azure Rights Management (Azure RMS) and access restrictions like 'Do Not Forward' or custom permissions, and it can be configured for SharePoint Online using the 'auto-labeling for SharePoint' policy, which runs in simulation mode first to test accuracy before enforcement.
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 (Option B) are the correct solution because they can automatically classify documents based on patterns like passport numbers using trainable classifiers or exact data match (EDM), and then apply encryption and access restrictions via the label's protection settings—all without user intervention. This meets the compliance officer's requirement for automatic classification and protection of personal data in SharePoint Online.
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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