SC-100 Practice Question: Design security operations, identity, and compliance capabilities
Your organization uses Microsoft Purview Information Protection to label sensitive documents. You need to ensure that documents containing personally identifiable information (PII) are automatically labeled when saved in SharePoint Online. What should you configure?
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
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Configure an auto-labeling policy for sensitivity labels targeting SharePoint.
The correct answer is C: configure an auto-labeling policy for sensitivity labels targeting SharePoint. Auto-labeling policies in Microsoft Purview Information Protection are the specific mechanism that scans SharePoint Online (and OneDrive/Exchange) content for sensitive information types such as PII and automatically applies a sensitivity label when a match is found, which is exactly the requirement here. Option A is wrong because retention labels govern data lifecycle and retention, not sensitivity classification, and cannot apply sensitivity labels. Option B is incorrect because publishing a sensitivity label only makes it available to users for manual application; it does not by itself auto-apply labels to content. Option D is incorrect because a DLP policy can detect PII and block or warn on sharing, but it does not automatically apply sensitivity labels to documents.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Create a retention label with auto-labeling rule.
Why it's wrong here
Retention labels are designed for records management and retention, not security classification. An auto-labeling rule for retention labels can automatically assign a retention label to content, but it never applies a sensitivity label or any encryption/protection controls. Sensitivity labels are the mechanism that carries classification and protection settings, so this action fails to meet the requirement to classify the documents.
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Publish a sensitivity label with auto-labeling for SharePoint.
Why it's wrong here
Publishing a sensitivity label only makes it available for users to select manually from the sensitivity button in Office apps, or for later assignment via other policies. Auto-labeling is a separate capability in Microsoft Purview that is configured as an auto-labeling policy, not as part of the publishing workflow. Publishing alone will not trigger any automatic label application to SharePoint documents.
- ✓
Configure an auto-labeling policy for sensitivity labels targeting SharePoint.
Why this is correct
An auto-labeling policy in Microsoft Purview can be configured to automatically apply a sensitivity label to documents stored in SharePoint Online. You select the sensitivity label, choose the 'SharePoint Online' location, specify the sites, and define conditions based on sensitive info types or trainable classifiers. After testing, the policy can be set to enforce automatic labeling, which satisfies the requirement to classify the documents.
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Set up a DLP policy to detect PII and apply a label.
Why it's wrong here
DLP policies are used to detect sensitive information and enforce protective actions such as blocking sharing or sending a notification, but they do not apply sensitivity labels. DLP rules can trigger label actions only indirectly through 'Apply encryption' as a DLP action, but that is not the same as applying a sensitivity label and classification. The correct way to automatically apply a sensitivity label is through an auto-labeling policy.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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.