Quick Answer
The answer is that you must enable Storage Service Encryption (SSE) with customer-managed keys stored in an Azure Key Vault. This is required because Azure Storage encrypts data at rest by default using Microsoft-managed keys, but to meet the customer-managed key encryption requirements, you must switch to SSE with a customer-provided key stored in a Key Vault. The Key Vault acts as the secure, centralized repository that allows you to control key rotation, access policies, and auditing, which is the core technical concept behind customer-managed key encryption for Azure Storage. On the Microsoft Cybersecurity Architect exam, this scenario tests your understanding of the shared responsibility model and the specific dependency on Azure Key Vault for CMK—a common trap is assuming that simply enabling SSE is enough, but without the Key Vault integration, the customer cannot manage the keys. Remember the memory tip: "SSE needs a Key Vault key to be truly customer-managed."
This SC-100 practice question tests your understanding of design a strategy for data and applications. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 uses Azure Storage for sensitive data. They need to ensure that data is encrypted at rest and that encryption keys are managed by the customer (Customer-Managed Keys). Which THREE actions are required?
Enable double encryption
Why wrong: Optional, not required for CMK.
Create an Azure Key Vault to store the customer-managed key
Key Vault required for CMK.
Assign RBAC role to storage account to access Key Vault
Needed for key access.
Enable Azure Information Protection
Why wrong: Not related to storage encryption.
Enable Storage Service Encryption (SSE) with customer-managed keys
SSE with CMK is required.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Create an Azure Key Vault to store the customer-managed key
Option B is correct because customer-managed keys (CMK) for Azure Storage encryption must be stored in an Azure Key Vault, which provides a secure, centralized repository for managing cryptographic keys. Without a Key Vault, the customer cannot control or rotate the encryption keys used by Storage Service Encryption (SSE).
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Enable double encryption
Why it's wrong here
Optional, not required for CMK.
Create an Azure Key Vault to store the customer-managed key
Why this is correct
Key Vault required for CMK.
Related concept
Read the scenario before looking for a memorised answer.
Assign RBAC role to storage account to access Key Vault
Why this is correct
Needed for key access.
Related concept
Read the scenario before looking for a memorised answer.
Enable Azure Information Protection
Why it's wrong here
Not related to storage encryption.
Enable Storage Service Encryption (SSE) with customer-managed keys
Why this is correct
SSE with CMK is required.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
The trap here is that candidates may confuse optional features like double encryption or Azure Information Protection with mandatory prerequisites for customer-managed keys, when in fact only Key Vault creation, RBAC assignment, and enabling SSE with CMK are required.
Detailed technical explanation
When SSE with customer-managed keys is enabled, Azure Storage uses the key from Key Vault to wrap the data encryption key (DEK) via envelope encryption. The storage account must have the 'Key Vault Crypto Service Encryption User' RBAC role assigned to access the key, and the Key Vault must have soft-delete and purge protection enabled to prevent key loss. In a real-world scenario, if the Key Vault is deleted or the key is disabled, the storage account becomes inaccessible within minutes.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
What to study next
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FAQ
Design a strategy for data and applications — This question tests Design a strategy for data and applications — Read the scenario before looking for a memorised answer..
The correct answer is: Create an Azure Key Vault to store the customer-managed key — Option B is correct because customer-managed keys (CMK) for Azure Storage encryption must be stored in an Azure Key Vault, which provides a secure, centralized repository for managing cryptographic keys. Without a Key Vault, the customer cannot control or rotate the encryption keys used by Storage Service Encryption (SSE).
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
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