The correct approach is to use Azure Key Vault to store secrets and configure the application to use a managed identity to retrieve them. This eliminates the need to store any API keys or connection strings in source code, because the application authenticates directly to Key Vault using an Azure AD identity that is automatically managed by the platform, without requiring embedded credentials. On the Microsoft Cybersecurity Architect exam, this scenario tests your understanding of the principle of least privilege and secure secret lifecycle management, often appearing as a trap where less secure options like app settings or environment variables seem convenient but fail when source code is exposed. A common memory tip is "Managed Identity for the vault, not the code"—if you see a vendor with repo access, never store secrets in config files or environment variables, always delegate authentication to Azure’s identity layer.
SC-100 Practice Question: Design security solutions for applications and data
This SC-100 practice question tests your understanding of design security solutions for applications and data. 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.
You are designing security for a web application that will be developed by an external vendor. The vendor will have access to the source code repository and the development environment. You need to ensure that no secrets (e.g., API keys, connection strings) are stored in the source code. What is the best approach to manage secrets for this application?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "best"
Why it matters: Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Use Azure Key Vault to store secrets and configure the application to use managed identity to retrieve them.
Using Azure Key Vault to store secrets and referencing them from the application is the standard best practice. The application can use managed identity to authenticate to Key Vault securely. Storing secrets in app settings is not secure if the repository is accessible. Using environment variables is better but still not as secure as Key Vault. Hardcoding is unacceptable.
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.
✓
Use Azure Key Vault to store secrets and configure the application to use managed identity to retrieve them.
The clue word "best" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
✗
Store secrets in environment variables on the application server.
Why it's wrong here
Environment variables can be exposed if the server is compromised or misconfigured.
✗
Store secrets in Azure App Service application settings encrypted at rest.
Why it's wrong here
Application settings are accessible to anyone with access to the App Service configuration, not recommended if vendor has broad access.
✗
Embed secrets in the compiled code using obfuscation.
Why it's wrong here
Obfuscation is not security; secrets can be reverse-engineered.
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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this SC-100 question in full detail.
Identify which SC-100 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.
Design security solutions for applications and data — This question tests Design security solutions for applications and data — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Use Azure Key Vault to store secrets and configure the application to use managed identity to retrieve them. — Using Azure Key Vault to store secrets and referencing them from the application is the standard best practice. The application can use managed identity to authenticate to Key Vault securely. Storing secrets in app settings is not secure if the repository is accessible. Using environment variables is better but still not as secure as Key Vault. Hardcoding is unacceptable.
What should I do if I get this SC-100 question wrong?
Identify which SC-100 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.
Are there clue words in this question I should notice?
Yes — watch for: "best". Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Your organization is designing a security solution for a new web application that will be deployed on Azure App Service. The application will access an Azure SQL Database and an Azure Storage account. The security requirements include: (1) use managed identities for authentication, (2) encrypt data at rest and in transit, (3) restrict network access to the database and storage account to only the App Service, and (4) use Azure Key Vault for secrets management. Which TWO of the following should you implement?
medium
A.Configure the App Service to use a connection string with a storage account access key.
✓ B.Configure private endpoints for the SQL Database and Storage account.
✓ C.Configure the App Service to use a system-assigned managed identity.
D.Use shared access signatures (SAS) for the App Service to access the Storage account.
E.Configure service endpoints for the SQL Database and Storage account.
Why B: Option A and Option D are correct. Managed identities allow the App Service to authenticate to other Azure services without credentials. Private endpoints provide network isolation. Option B is wrong because connection strings with access keys negate the use of managed identities. Option C is wrong because service endpoints are less secure than private endpoints and do not provide the same level of isolation. Option E is wrong because SAS tokens are not recommended when managed identities are available.
Last reviewed: Jun 21, 2026
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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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