- A
Apply sensitivity labels to all data and configure auto-labeling.
Why wrong: Labels classify but do not enforce geographic restrictions.
- B
Enable Microsoft Purview Customer Lockbox to restrict data access.
Why wrong: Customer Lockbox controls admin access, not data movement.
- C
Configure Conditional Access policies to block access from unauthorized regions.
Why wrong: Conditional Access controls sign-in, not data loss prevention.
- D
Create a DLP policy that detects sensitive data and blocks sharing outside approved regions.
DLP policies can block sharing based on geographic location.
Question 131 of 985
Describe security, compliance, privacy, and trust in Microsoft 365 →hardMultiple ChoiceObjective-mapped
Enforce Data Residency with Microsoft Purview DLP Policies
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. A key principle to apply: data Loss Prevention (DLP). 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 multinational company uses Microsoft 365 E5 and needs to meet data residency requirements in the EU and Asia. They plan to use Microsoft Purview Data Loss Prevention (DLP) to prevent sensitive data from leaving approved geographic boundaries. Which action should they take to enforce this policy?
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 sensitive data and blocks sharing outside approved regions.
D is correct because Microsoft Purview Data Loss Prevention (DLP) policies can be configured to detect sensitive data and block sharing outside approved geographic regions, enabling enforcement of data residency requirements. A is incorrect because sensitivity labels and auto-labeling classify data but do not block data movement based on location. B is incorrect because Customer Lockbox controls access to data by Microsoft support personnel, not data location enforcement. C is incorrect because Conditional Access policies control access to resources based on conditions like location, but they do not prevent data from being shared or transferred after access is granted.
Key principle: Data Loss Prevention (DLP)
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 sensitivity labels to all data and configure auto-labeling.
Why it's wrong here
Labels classify but do not enforce geographic restrictions.
- ✗
Enable Microsoft Purview Customer Lockbox to restrict data access.
Why it's wrong here
Customer Lockbox controls admin access, not data movement.
- ✗
Configure Conditional Access policies to block access from unauthorized regions.
Why it's wrong here
Conditional Access controls sign-in, not data loss prevention.
- ✓
Create a DLP policy that detects sensitive data and blocks sharing outside approved regions.
Why this is correct
DLP policies can block sharing based on geographic location.
Related concept
Data Loss Prevention (DLP)
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
Treat this as a scenario question. Identify the problem, the constraint, and the best action. Then compare each option against those facts.
KKey Concepts to Remember
- Data Loss Prevention (DLP)
- Data residency
- DLP policy
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
Data Loss Prevention (DLP)
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.
Review data Loss Prevention (DLP), then practise related MS-900 questions on the same topic to reinforce the concept.
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Describe security, compliance, privacy, and trust in Microsoft 365 — study guide chapter
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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 — Data Loss Prevention (DLP).
What is the correct answer to this question?
The correct answer is: Create a DLP policy that detects sensitive data and blocks sharing outside approved regions. — D is correct because Microsoft Purview Data Loss Prevention (DLP) policies can be configured to detect sensitive data and block sharing outside approved geographic regions, enabling enforcement of data residency requirements. A is incorrect because sensitivity labels and auto-labeling classify data but do not block data movement based on location. B is incorrect because Customer Lockbox controls access to data by Microsoft support personnel, not data location enforcement. C is incorrect because Conditional Access policies control access to resources based on conditions like location, but they do not prevent data from being shared or transferred after access is granted.
What should I do if I get this MS-900 question wrong?
Review data Loss Prevention (DLP), then practise related MS-900 questions on the same topic to reinforce the concept.
What is the key concept behind this question?
Data Loss Prevention (DLP)
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Last reviewed: Jun 21, 2026
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