- A
A new regulatory compliance standard
Why wrong: Incorrect. Regulatory compliance standards in Defender for Cloud are built-in (e.g., CIS, PCI DSS). You cannot create a custom standard; instead, you create a custom policy initiative that appears in the dashboard.
- B
A custom Azure Policy initiative
Correct. By creating a custom initiative that includes the Azure Security Benchmark policy definitions plus custom policy definitions, you can deploy a single initiative covering both required sets of controls.
- C
A custom Azure Policy definition
Why wrong: Incorrect. A single custom policy definition only covers one specific condition (e.g., enforce encryption). To combine multiple controls, you need an initiative (a set of policies).
- D
A Secure Score recommendation override
Why wrong: Incorrect. Secure Score overrides allow you to exempt or suppress certain recommendations, but they do not enable assessment against custom controls.
Quick Answer
The answer is a custom Azure Policy initiative. This is the correct choice because an Azure Policy initiative, also known as a policy set, is specifically designed to group multiple policy definitions—such as the built-in Azure Security Benchmark controls and your organization’s custom controls—into a single, reusable package that can be assigned at scale across subscriptions and management groups. On the SC-200 exam, this scenario tests your understanding of how Defender for Cloud leverages Azure Policy for compliance assessment, often contrasting initiatives with individual policy definitions or regulatory compliance standards. A common trap is selecting a single policy definition, which cannot combine multiple control sets, or assuming a regulatory compliance dashboard alone suffices without the grouping capability. Remember the memory tip: “Initiative = Initiative for grouping; a single policy is just one rule.”
SC-200 Practice Question: Mitigate threats using Microsoft Defender for Cloud
This SC-200 practice question tests your understanding of mitigate threats using microsoft defender for cloud. 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 security administrator wants to assess their Azure environment against the Azure Security Benchmark and also include custom security controls defined by their organization. They need a single, reusable policy initiative that can be assigned across multiple subscriptions and management groups. What should the administrator create in Microsoft Defender for Cloud?
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
A custom Azure Policy initiative
The administrator needs a single, reusable policy initiative that includes both Azure Security Benchmark controls and custom organizational controls. A custom Azure Policy initiative (also known as a policy set) allows combining multiple policy definitions, including built-in benchmark controls and custom definitions, into one assignable package across subscriptions and management groups. This is the correct approach because initiatives are designed for grouping related policies and can be assigned at scale in Microsoft Defender for Cloud.
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 new regulatory compliance standard
Why it's wrong here
Incorrect. Regulatory compliance standards in Defender for Cloud are built-in (e.g., CIS, PCI DSS). You cannot create a custom standard; instead, you create a custom policy initiative that appears in the dashboard.
- ✓
A custom Azure Policy initiative
Why this is correct
Correct. By creating a custom initiative that includes the Azure Security Benchmark policy definitions plus custom policy definitions, you can deploy a single initiative covering both required sets of controls.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
A custom Azure Policy definition
Why it's wrong here
Incorrect. A single custom policy definition only covers one specific condition (e.g., enforce encryption). To combine multiple controls, you need an initiative (a set of policies).
- ✗
A Secure Score recommendation override
Why it's wrong here
Incorrect. Secure Score overrides allow you to exempt or suppress certain recommendations, but they do not enable assessment against custom controls.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse a single custom policy definition (Option C) with a policy initiative, not realizing that an initiative is the only way to group multiple controls into a single assignable package for compliance assessment.
Detailed technical explanation
How to think about this question
Under the hood, a custom Azure Policy initiative is a JSON-based 'policySetDefinition' resource that references an array of policyDefinitionIds (both built-in and custom) along with parameters. When assigned via Defender for Cloud's regulatory compliance dashboard, the initiative's compliance state is evaluated across all resources in the scope, and each policy definition's effect (e.g., Audit, Deny, DeployIfNotExists) is applied. A real-world scenario is an organization that must meet both the Azure Security Benchmark and internal controls for data residency; they create a custom initiative that includes the built-in Azure Security Benchmark initiative plus custom policies enforcing data location restrictions.
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
An e-commerce site experiences heavy traffic on Black Friday and near-zero traffic during off-peak weeks. Rather than provisioning permanent large VMs, the team uses auto-scaling groups that add capacity automatically under load and reduce it overnight. Questions like this test whether you understand elasticity, availability zones, and cloud compute scaling patterns.
What to study next
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FAQ
Questions learners often ask
What does this SC-200 question test?
Mitigate threats using Microsoft Defender for Cloud — This question tests Mitigate threats using Microsoft Defender for Cloud — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: A custom Azure Policy initiative — The administrator needs a single, reusable policy initiative that includes both Azure Security Benchmark controls and custom organizational controls. A custom Azure Policy initiative (also known as a policy set) allows combining multiple policy definitions, including built-in benchmark controls and custom definitions, into one assignable package across subscriptions and management groups. This is the correct approach because initiatives are designed for grouping related policies and can be assigned at scale in Microsoft Defender for Cloud.
What should I do if I get this SC-200 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 11, 2026
This SC-200 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-200 exam.
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