The answer is an auto-labeling policy for sensitivity labels with encryption. This is correct because Microsoft Purview’s auto-labeling can scan documents in SharePoint Online for sensitive data patterns—such as credit card numbers—and automatically apply a sensitivity label that enforces encryption, ensuring that any file shared externally is protected without manual intervention. On the Microsoft Cybersecurity Architect exam, this scenario tests your understanding of how sensitivity labels integrate with data classification and auto-labeling policies, often appearing as a trap where candidates confuse DLP actions (which block or warn but cannot encrypt) with the encryption enforcement built into sensitivity labels. A common mistake is choosing IRM, which requires manual application or DLP integration, whereas auto-labeling provides seamless, rule-based encryption. Memory tip: think “auto-label = auto-encrypt” for sensitive data shared externally.
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. 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.
Your organization is designing a solution to protect sensitive data in Microsoft SharePoint Online. You need to ensure that documents containing credit card numbers are automatically encrypted when shared with external users. What should you configure?
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 with encryption
Option B is correct because auto-labeling in Microsoft Purview can apply sensitivity labels that enforce encryption based on sensitive data patterns. Option A is wrong because DLP policies can block or warn but not automatically encrypt. Option C is wrong because retention labels manage lifecycle. Option D is wrong because IRM can protect but requires manual application or DLP integration, not automatic labeling.
Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
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 Data Loss Prevention (DLP) policy that blocks sharing
Why it's wrong here
DLP blocks but doesn't encrypt automatically.
✗
Information Rights Management (IRM) for SharePoint
Why it's wrong here
IRM can protect but isn't automatic based on content.
✓
An auto-labeling policy for sensitivity labels with encryption
Why this is correct
Auto-labeling applies labels with encryption based on sensitive content.
Related concept
Static NAT maps one inside address to one outside address.
✗
A retention policy with a hold
Why it's wrong here
Retention policies manage retention, not encryption.
Common exam traps
Common exam trap: NAT rules depend on direction and matching traffic
NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.
Detailed technical explanation
How to think about this question
NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.
KKey Concepts to Remember
Static NAT maps one inside address to one outside address.
PAT allows many inside hosts to share one public address using ports.
Inside local and inside global describe the private and translated addresses.
NAT ACLs identify traffic for translation, not always security filtering.
TExam Day Tips
→Identify inside and outside interfaces first.
→Check whether the scenario needs static NAT, dynamic NAT or PAT.
→Do not confuse NAT matching ACLs with normal packet-filtering intent.
Key takeaway
NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
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. NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this SC-100 question in full detail.
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related SC-100 NAT questions on configuration and troubleshooting.
Design security solutions for applications and data — This question tests Design security solutions for applications and data — Static NAT maps one inside address to one outside address..
What is the correct answer to this question?
The correct answer is: An auto-labeling policy for sensitivity labels with encryption — Option B is correct because auto-labeling in Microsoft Purview can apply sensitivity labels that enforce encryption based on sensitive data patterns. Option A is wrong because DLP policies can block or warn but not automatically encrypt. Option C is wrong because retention labels manage lifecycle. Option D is wrong because IRM can protect but requires manual application or DLP integration, not automatic labeling.
What should I do if I get this SC-100 question wrong?
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related SC-100 NAT questions on configuration and troubleshooting.
What is the key concept behind this question?
Static NAT maps one inside address to one outside address.
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 uses Microsoft Purview Data Loss Prevention (DLP) to protect sensitive data in Microsoft 365. You need to ensure that when a user attempts to share a document containing credit card numbers externally, the action is blocked and the user is shown a policy tip. Which DLP rule configuration should you use?
medium
✓ A.Block the action with a policy tip and allow override
B.Block the action and send an incident report in email
C.Audit the action only
D.Block the action without allowing override
Why A: Option B is correct: Block with override and policy tip allows the block and shows the tip, while still allowing user override if they provide justification. Option A is wrong: Block without override is too restrictive and does not show a policy tip. Option C is wrong: Audit only does not block the action. Option D is wrong: Block with notification sends an email but not a policy tip.
Variation 2. Your organization uses Microsoft Purview Data Loss Prevention (DLP) to protect sensitive data in Microsoft 365. You need to create a DLP policy that detects and blocks sharing of credit card numbers in Exchange Online emails. Which TWO components must you configure?
medium
A.Retention label for financial data
B.Auto-labeling policy
✓ C.Action to block sharing
✓ D.Sensitive info type for credit card number
E.Trainable classifier for credit card numbers
Why C: Option A is correct because a sensitive info type for credit card number is required to identify the data. Option C is correct because the action 'Block' must be set to prevent sharing. Option B is wrong because a retention label is for data retention, not DLP. Option D is wrong because trainable classifiers are for complex patterns, but credit card numbers are predefined. Option E is wrong because auto-labeling is separate from DLP.
Variation 3. Your organization uses Microsoft Purview Data Loss Prevention (DLP) to protect sensitive data in Exchange Online. The compliance team wants to prevent users from sending emails containing Social Security numbers to external recipients. What should you configure?
medium
✓ A.Create a DLP policy with the condition 'Content contains sensitive info type' and action 'Block the message'
B.Configure a retention label for emails
C.Create a mail flow rule in Exchange admin center
D.Apply a sensitivity label to all emails
Why A: Option A is correct because a DLP policy can detect sensitive info types and block the email. Option B is wrong because sensitivity labels are for classification, not blocking. Option C is wrong because retention labels are for data retention. Option D is wrong because mail flow rules (transport rules) can do similar but DLP is the recommended approach.
Last reviewed: Jun 21, 2026
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