SC-900 Practice Question: Describe the concepts of security, compliance, and identity
A company is deploying Microsoft 365 and wants to ensure that sensitive information in emails and documents is protected from unauthorized access and sharing. The compliance team requires a solution that can automatically classify and label content based on its sensitivity. Which Microsoft Purview feature should they use?
⚠ Common exam trap
Watch out — candidates often confuse DLP with sensitivity labels, as both deal with sensitive information, but only sensitivity labels provide persistent classification and protection.
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
✓
Sensitivity labels
Sensitivity labels in Microsoft Purview are designed to classify and protect content by applying encryption, visual markings, and sharing restrictions. They can be applied automatically based on sensitive information types, ensuring that sensitive data is consistently protected. Other features like DLP, retention labels, and Defender for Cloud Apps policies serve different purposes and do not provide the same classification and labeling capabilities.
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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Data Loss Prevention (DLP) policies
Why it's wrong here
Data Loss Prevention (DLP) policies help prevent sharing of sensitive information, but they do not automatically classify and label content. DLP uses sensitive information types to detect and block sharing, but it does not apply persistent labels. While DLP is part of the broader information protection strategy, it is not the primary tool for classification and labeling.
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Microsoft Defender for Cloud Apps policies
Why it's wrong here
Microsoft Defender for Cloud Apps policies are used to govern cloud app usage, detect anomalies, and control data sharing in cloud applications. They do not apply classification labels to content within Microsoft 365 services like Exchange and SharePoint. While they can enforce DLP-like controls, they do not provide the native labeling and classification capabilities of Microsoft Purview sensitivity labels.
- ✗
Retention labels
Why it's wrong here
Retention labels are used to manage the lifecycle of content by specifying how long to keep it and when to delete it. They do not classify or protect content based on sensitivity. While retention labels can be applied automatically based on sensitive information types, their purpose is retention and disposition, not protection against unauthorized access or sharing.
- ✓
Sensitivity labels
Why this is correct
Sensitivity labels in Microsoft Purview allow organizations to classify and protect content based on its sensitivity. Labels can be applied manually or automatically using policies that detect sensitive information types. Once labeled, the content can be encrypted, marked with visual markings, and restricted from sharing. This directly meets the requirement to automatically classify and label sensitive information in emails and documents.
Go deeper
Related to this question
Learn chapter
Cloud App Governance and App Consent
Key term
Microsoft Purview
Microsoft Purview is a unified data governance and compliance service that helps organizations discover, manage, and protect their data across on-premises, cloud, and hybrid environments.
Key term
Compliance
Compliance is the process of ensuring that an organization follows laws, regulations, standards, and internal policies that apply to its operations and data handling.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Microsoft exam blueprint
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