- A
A communication compliance policy
Why wrong: Communication compliance monitors for inappropriate messages, not automatic labeling.
- B
A data loss prevention (DLP) rule
Why wrong: DLP rules prevent sharing, but do not apply labels automatically.
- C
A manual labeling policy
Why wrong: Manual labeling requires user action, not automatic.
- D
An auto-labeling policy for sensitivity labels
Auto-labeling policies scan documents and apply labels automatically.
SC-100 Practice Question: Design solutions that align with security best practices and priorities
This SC-100 practice question tests your understanding of design solutions that align with security best practices and priorities. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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 company is implementing Microsoft Purview to protect sensitive data in SharePoint Online. They need to automatically apply a 'Highly Confidential' label to documents that contain credit card numbers. What should they create?
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
An auto-labeling policy for sensitivity labels
Option D is correct because Microsoft Purview auto-labeling policies for sensitivity labels can automatically detect sensitive data types (e.g., credit card numbers) in SharePoint Online documents and apply a 'Highly Confidential' label without user intervention. This meets the requirement for automatic, policy-driven labeling based on content inspection.
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.
- ✗
A communication compliance policy
Why it's wrong here
Communication compliance monitors for inappropriate messages, not automatic labeling.
- ✗
A data loss prevention (DLP) rule
Why it's wrong here
DLP rules prevent sharing, but do not apply labels automatically.
- ✗
A manual labeling policy
Why it's wrong here
Manual labeling requires user action, not automatic.
- ✓
An auto-labeling policy for sensitivity labels
Why this is correct
Auto-labeling policies scan documents and apply labels automatically.
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 DLP rules (which detect and protect data) with auto-labeling policies (which apply sensitivity labels), but the question specifically asks for automatic label application, not just detection or blocking.
Detailed technical explanation
How to think about this question
Auto-labeling policies use the Microsoft 365 built-in sensitive information types (e.g., Credit Card Number, defined by regex and checksum validation) to scan content at rest in SharePoint Online. The policy can be configured to apply a sensitivity label automatically when a match is found, leveraging the same classification engine used by DLP but targeting label application rather than enforcement actions like blocking or encryption.
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 cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Questions learners often ask
What does this SC-100 question test?
Design solutions that align with security best practices and priorities — This question tests Design solutions that align with security best practices and priorities — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: An auto-labeling policy for sensitivity labels — Option D is correct because Microsoft Purview auto-labeling policies for sensitivity labels can automatically detect sensitive data types (e.g., credit card numbers) in SharePoint Online documents and apply a 'Highly Confidential' label without user intervention. This meets the requirement for automatic, policy-driven labeling based on content inspection.
What should I do if I get this SC-100 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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Last reviewed: Jun 24, 2026
This SC-100 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the SC-100 exam.
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