Question 881 of 985

Describe security, compliance, privacy, and trust in Microsoft 365 →hardMultiple ChoiceObjective-mapped

Auto-Labeling Policy for Custom Sensitive Info Types

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.

Contoso Pharmaceuticals uses Microsoft 365 E5 with Microsoft Purview. They have a requirement to automatically classify and protect documents containing research and development (R&D) data. The R&D data is stored in SharePoint Online and is defined by a custom sensitive info type that matches a specific pattern (e.g., 'R&D-XXXX-XXXX'). They want to apply a sensitivity label called 'Highly Confidential' to any document containing this pattern. The label should encrypt the document and restrict access to members of the R&D team only. Additionally, they want users to be prompted to apply the label when they create a new document in the R&D site. What should you configure?

A
Create a DLP policy that blocks sharing of documents containing the pattern.
Why wrong: DLP blocks sharing but does not apply labels or encryption.
B
Configure a default sensitivity label for the R&D SharePoint site.
Why wrong: Default label applies to all documents, not based on content.
C
Create an auto-labeling policy in Microsoft Purview that applies the 'Highly Confidential' label to documents containing the custom sensitive info type.
Auto-labeling can automatically apply the label with encryption and access control.
D
Train users to manually apply the 'Highly Confidential' label to R&D documents.
Why wrong: Manual labeling does not guarantee compliance and is not automatic.

Full breakdown with real-world context →

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 an auto-labeling policy in Microsoft Purview that applies the 'Highly Confidential' label to documents containing the custom sensitive info type.

Auto-labeling policies in Microsoft Purview can automatically apply a sensitivity label based on sensitive info types (e.g., custom pattern 'R&D-XXXX-XXXX'). The 'Highly Confidential' label must be pre-configured with encryption and access restrictions for the R&D team. Option A (DLP policy) detects and blocks sharing but does not apply labels. Option B (default label) applies a static label to all documents in the site, not based on content. Option D (manual labeling) does not meet the automatic requirement.

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.

✗
Create a DLP policy that blocks sharing of documents containing the pattern.
Why it's wrong here
DLP blocks sharing but does not apply labels or encryption.
✗
Configure a default sensitivity label for the R&D SharePoint site.
Why it's wrong here
Default label applies to all documents, not based on content.
✓
Create an auto-labeling policy in Microsoft Purview that applies the 'Highly Confidential' label to documents containing the custom sensitive info type.
Why this is correct
Auto-labeling can automatically apply the label with encryption and access control.
Related concept
Read the scenario before looking for a memorised answer.
✗
Train users to manually apply the 'Highly Confidential' label to R&D documents.
Why it's wrong here
Manual labeling does not guarantee compliance and is not automatic.

Common exam traps

Common exam trap: answer the scenario, not the keyword

Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.

Detailed technical explanation

How to think about this question

This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.

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.
Use explanations to understand the rule behind the answer.

TExam Day Tips

Underline the problem statement mentally.
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.

What to study next

Got this wrong? Here's your next step.

Identify which MS-900 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.

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FAQ

Questions learners often ask

What does this MS-900 question test?

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: Create an auto-labeling policy in Microsoft Purview that applies the 'Highly Confidential' label to documents containing the custom sensitive info type. — Auto-labeling policies in Microsoft Purview can automatically apply a sensitivity label based on sensitive info types (e.g., custom pattern 'R&D-XXXX-XXXX'). The 'Highly Confidential' label must be pre-configured with encryption and access restrictions for the R&D team. Option A (DLP policy) detects and blocks sharing but does not apply labels. Option B (default label) applies a static label to all documents in the site, not based on content. Option D (manual labeling) does not meet the automatic requirement.

What should I do if I get this MS-900 question wrong?

What is the key concept behind this question?

Read the scenario before looking for a memorised answer.

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